Advertisement
U.S. markets open in 1 hour 46 minutes
  • S&P Futures

    5,191.75
    -23.00 (-0.44%)
     
  • Dow Futures

    39,126.00
    -97.00 (-0.25%)
     
  • Nasdaq Futures

    18,118.25
    -113.25 (-0.62%)
     
  • Russell 2000 Futures

    2,041.00
    -8.80 (-0.43%)
     
  • Crude Oil

    82.76
    +0.04 (+0.05%)
     
  • Gold

    2,158.00
    -6.30 (-0.29%)
     
  • Silver

    25.15
    -0.12 (-0.47%)
     
  • EUR/USD

    1.0852
    -0.0025 (-0.23%)
     
  • 10-Yr Bond

    4.3400
    0.0000 (0.00%)
     
  • Vix

    14.79
    +0.46 (+3.21%)
     
  • GBP/USD

    1.2692
    -0.0036 (-0.28%)
     
  • USD/JPY

    150.4250
    +1.3270 (+0.89%)
     
  • Bitcoin USD

    62,930.75
    -5,394.45 (-7.90%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,702.53
    -20.02 (-0.26%)
     
  • Nikkei 225

    40,003.60
    +263.20 (+0.66%)
     

What Type Of Shareholder Owns Second Chance Properties Ltd's (SGX:528)?

Every investor in Second Chance Properties Ltd (SGX:528) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'

With a market capitalization of S$166m, Second Chance Properties is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions don't own shares in the company. Let's delve deeper into each type of owner, to discover more about 528.

View our latest analysis for Second Chance Properties

SGX:528 Ownership Summary, September 6th 2019
SGX:528 Ownership Summary, September 6th 2019

What Does The Lack Of Institutional Ownership Tell Us About Second Chance Properties?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Second Chance Properties, for yourself, below.

SGX:528 Income Statement, September 6th 2019
SGX:528 Income Statement, September 6th 2019

Hedge funds don't have many shares in Second Chance Properties. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Second Chance Properties

The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own the majority of Second Chance Properties Ltd. This means they can collectively make decisions for the company. That means they own S$133m worth of shares in the S$166m company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 20% ownership, the general public have some degree of sway over 528. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

Advertisement