It has been said here more than once that 'Institutions' are NOT allowed to buy penny stocks. (please reread that sentence over and over until you believe it) To every rule there are a few exceptions but, those exceptions in this case are miniscule and meaningless to us.

When institutions buy we wil be over $5 a share and we are far away from that.

Very true. I am a member of the investment committe of a small (50MM) multi employer pension plan and a contributing employer to 9 others. All of these plans have investment policies in the trust documents that outline targets with minimums and maximums for various asset allocations. They all have specific language stating investments can only be in securities that are listed on a major exchange.

However, being pension plans they are probably more conservative than a mutual fund. It's up to the individual mutual funds to draft their own charter and decide what types of investments they will hold. I'm not sure there are many out there that invest in any stock not listed on a major exchange, but I may be wrong.

2nd paragraph is totally my opinion.