4 Companies That Have Institutional Investors On The Sidelines

What follows is a list of companies that have institutional ownership below 10% and dividend yields higher than 3.5%. The lack of ownership by institutions means that behavioral anomalies are more embedded in the stock price, since retail investors have a relatively limited ability to arbitrage discounts to intrinsic value. While, in some sense, aggregate trading activity by retail investors helps to close the discount, the reality of the situation is that institutions have greater resources to assess fundamental value. The companies mentioned below cover a variety of industries: semiconductors, oil & gas, pharmaceuticals, and food products.

United Microelectronics (UMC)

United Microelectronics is rated a "hold" and trades at a respective 12.9x and 27.1x past and forward earnings with a dividend yield of 7.1%. Institutions own 8.2% of the company.

Consensus estimates for United Microelectronics' EPS forecast that it will decline by 81.8% to $0.06 in 2011, grow by 16.7%