【drilling holes in lvl beams】What Kind Of Shareholder Owns Most Century Legend (Holdings) Limited (HKG:79) Stock?

If you want to know who really controls Century Legend (Holdings) Limited (

HKG:79

),drilling holes in lvl beams then you’ll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, ‘Don’t tell me what you think, tell me what you have in your portfolio.’

Century Legend (Holdings) is a smaller company with a market capitalization of HK$124m, so it may still be flying under the radar of many institutional investors. Taking a look at the our data on the ownership groups (below), it’s seems that institutions are not on the share registry. Let’s delve deeper into each type of owner, to discover more about 79.

Check out our latest analysis for Century Legend (Holdings)

SEHK:79 Ownership Summary January 2nd 19

What Does The Lack Of Institutional Ownership Tell Us About Century Legend (Holdings)?

Small companies that are not very actively traded often lack institutional investors, but it’s less common to see large companies without them.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don’t attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it’s always possible that professional investors are avoiding a company because they don’t think it’s the best place for their money. 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 Century Legend (Holdings), for yourself, below.

SEHK:79 Income Statement Export January 2nd 19

We note that hedge funds don’t have a meaningful investment in Century Legend (Holdings). Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Century Legend (Holdings)

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Story continues

Our information suggests that insiders maintain a significant holding in Century Legend (Holdings) Limited. It has a market capitalization of just HK$124m, and insiders have HK$57m worth of shares in their own names. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can

click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, with a 48% stake in the company, will not easily be ignored. 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.

Private Company Ownership

Our data indicates that Private Companies hold 6.2%, of the company’s shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand Century Legend (Holdings) better, we need to consider many other factors.

Many find it useful

to take an in depth look at how a company has performed in the past. You can access

this

detailed graph

of past earnings, revenue and cash flow

.

If you would prefer check out another company — one with potentially superior financials — then do not miss this

free

list of interesting companies, backed by strong financial data.

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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at

[email protected]

.

View comments