What Type Of Shareholders Make Up Perusahaan Sadur Timah Malaysia (Perstima) Berhad's (KLSE:PERSTIM) Share Registry?

If you want to know who really controls Perusahaan Sadur Timah Malaysia (Perstima) Berhad (KLSE:PERSTIM), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

With a market capitalization of RM503m, Perusahaan Sadur Timah Malaysia (Perstima) Berhad is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutions are not on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about Perusahaan Sadur Timah Malaysia (Perstima) Berhad.

See our latest analysis for Perusahaan Sadur Timah Malaysia (Perstima) Berhad

What Does The Lack Of Institutional Ownership Tell Us About Perusahaan Sadur Timah Malaysia (Perstima) Berhad?

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 multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution 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 Perusahaan Sadur Timah Malaysia (Perstima) Berhad, for yourself, below.

We note that hedge funds don't have a meaningful investment in Perusahaan Sadur Timah Malaysia (Perstima) Berhad. Versalite Sdn Bhd is currently the largest shareholder, with 33% of shares outstanding. For context, the second largest shareholder holds about 11% of the shares outstanding, followed by an ownership of 7.3% by the third-largest shareholder.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 Perusahaan Sadur Timah Malaysia (Perstima) Berhad

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We can see that insiders own shares in Perusahaan Sadur Timah Malaysia (Perstima) Berhad. In their own names, insiders own RM44m worth of stock in the RM503m company. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

The general public, with a 37% 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

It seems that Private Companies own 35%, of the Perusahaan Sadur Timah Malaysia (Perstima) Berhad stock. 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.

Public Company Ownership

Public companies currently own 19% of Perusahaan Sadur Timah Malaysia (Perstima) Berhad stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Perusahaan Sadur Timah Malaysia (Perstima) Berhad better, we need to consider many other factors. Be aware that Perusahaan Sadur Timah Malaysia (Perstima) Berhad is showing 3 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

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.

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