Stock Analysis

Is MOBASE Co.,Ltd. (KOSDAQ:101330) Popular Amongst Insiders?

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KOSDAQ:A101330
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If you want to know who really controls MOBASE Co.,Ltd. (KOSDAQ:101330), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. 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.

With a market capitalization of ₩114b, MOBASELtd 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 institutional investors have not yet purchased shares. We can zoom in on the different ownership groups, to learn more about MOBASELtd.

Check out our latest analysis for MOBASELtd

ownership-breakdown
KOSDAQ:A101330 Ownership Breakdown March 16th 2021

What Does The Lack Of Institutional Ownership Tell Us About MOBASELtd?

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

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. 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. MOBASELtd might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

earnings-and-revenue-growth
KOSDAQ:A101330 Earnings and Revenue Growth March 16th 2021

MOBASELtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Byeoung-Jun Sohn with 31% of shares outstanding. With 12% and 0.05% of the shares outstanding respectively, Hae Suk Jo and Hui-Jung Kang are the second and third largest shareholders.

On studying our ownership data, we found that 3 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of MOBASELtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

It seems insiders own a significant proportion of MOBASE Co.,Ltd.. It has a market capitalization of just ₩114b, and insiders have ₩49b worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public -- mostly retail investors -- own 57% of MOBASELtd. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 2 warning signs we've spotted with MOBASELtd .

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.

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About KOSDAQ:A101330

MOBASELtd

Mobase Co.,Ltd. manufactures and sells mobile phone cases in South Korea.

Mediocre balance sheet and slightly overvalued.

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