Rambus (RMBS)

[Skeptic]

Unfortunately, with a quarter of the shares held by institutions and most of the rest held in Street name or by insiders, the number of individual shareholders is small and of scant concern to Rambus.


Little insitutional holding suggests that this is in fact a retail stock owned mostly by individual investors who buy this stock with the hope that Rambus will hit paydirt and the stock will double/triple overnight. The fact that this is a retail stock explains why the BOD can continue to lavish stock options on mediocre (that's a gift) mgmt and why Rambus can get away with no IR department and few press releases. They don't want to talk to the Tom, Dick, or Harry who owns a 100 shares. Perhaps if more institutions owned Rambus, we'd see a legitimate proxy fight to replace the BOD with members who are more fiscally conservative and not in bed with Tate et al.

Once again I wonder why Stuart Steele does not do himself a favor and take mgmt to task - he is losing hundreds of thousands every day while people like Laura Stark are collecting on his apathy.

The only positive I see with little institutional ownership is that there shouldn't be any dramatic drops due to their selling. Of the institutional ownership, I wonder how much is hedged with shorting?