【are cockroaches attracted to cardboard】What Kind Of Shareholders Own CWT International Limited (HKG:521)?

Every investor in CWT International Limited (

HKG:521

) should be aware of the most powerful shareholder groups. Generally speaking,are cockroaches attracted to cardboard as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.

CWT International is a smaller company with a market capitalization of HK$1.5b, 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 own shares in the company. We can zoom in on the different ownership groups, to learn more about 521.

View our latest analysis for CWT International

SEHK:521 Ownership Summary January 2nd 19

What Does The Institutional Ownership Tell Us About CWT International?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that CWT International does have institutional investors; and they hold 19% of the stock. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of CWT International, (below). Of course, keep in mind that there are other factors to consider, too.

SEHK:521 Income Statement Export January 2nd 19

We note that hedge funds don’t have a meaningful investment in CWT International. 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 CWT International

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 information suggests that CWT International Limited insiders own under 1% of the company. But they may have an indirect interest through a corporate structure that we haven’t picked up on. It has a market capitalization of just HK$1.5b, and the board has only HK$3.4m worth of shares in their own names. I generally like to see a board more invested. However it might be worth checking

if those insiders have been buying.

Story continues

General Public Ownership

The general public, with a 13% stake in the company, will not easily be ignored. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 67%, of the 521 stock. It’s hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

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

. Therefore, you may wish to see our

free

collection of interesting prospects boasting favorable financials.

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]

.

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