As per the article most FPO's are owned by General Public's.
Institutional own zilch.
With all the rubbish being talked on forums adds another dimension to the intention of keeping the SP down.
All of above is IMO.
DYOR
If the link does not work search through a search engine to your liking.
Who Are The Major Shareholders In Environmental Clean Technologies Limited (ASX:ESI)?
Ben Rossbaum October 2, 2017
I am going to take a deep dive into Environmental Clean Technologies Limited’s (ASX:ESI) most recent ownership structure, not a frequent subject of discussion among individual investors. The impact of a company’s ownership structure affects both its short- and long-term performance. If an activist institution invests the same amount of capital in a stock as a passive long-term pension fund, the implications are potentially different for key corporate financing decisions such as the use of excess cash or the source of financing. While these are more of a long-term investor’s concern, short-term investors may find the impact of institutional trading overwhelming enough to lose out on what could be a potential opportunity. Therefore, it is beneficial for us to examine ESI’s ownership structure in more detail. View our latest analysis for Environmental Clean Technologies https://**.st/news/wp-content/uploads/2017/10/ASX-ESI-ownership_summary-Mon-Oct-02-2017.jpg
ASX:ESI Ownership Summary Oct 2nd 17 Institutional Ownership
Institutional investors transact in large blocks which can influence the momentum of stock prices, at least in the short-term, especially when there is a low level of public shares available on the market to trade. A low institutional ownership of 1.02% puts ESI on a list of companies that are not likely exposed to spikes in volatility resulting from institutional trading. Less covered stocks like ESI used to feature in legendary investor Peter Lynch’s portfolio, which would later be bought up by fast-following institutions as the stock gained more popularity. Insider Ownership
Another important group of shareholders are company insiders. Insider ownership has to do more with how the company is managed and less to do with the direct impact of the magnitude of shares trading on the market. 19.44% ownership of ESI insiders is large enough to make an impact on shareholder returns. In general, this level of insider ownership has negatively affected underperforming (consistently low PE ratio) companies and positively affected the companies that outperform (consistently high PE ratio). It’s also interesting to learn what ESI insiders have been doing with their shareholdings lately. Insider buying may be a sign of upbeat future expectations, however, selling doesn’t necessarily mean the opposite as insiders may be motivated by their personal financial needs. General Public Ownership
The general public holds a substantial 69.04% stake in ESI, making it a highly popular stock among retail investors. This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses. Such level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. This is a positive sign for an investor who wants to be involved in key decision-making of the company. Private Company Ownership
Potential investors in ESI should also look at another important group of investors: private companies, with a stake of 10.50%, who are primarily invested because of strategic and capital gain interests. With this size of ownership in ESI, this ownership class can affect the company’s business strategy. As a result, potential investors should further explore the company’s business relations with these companies and find out if they can affect shareholder returns in the long-term. Conclusion
With a low level of institutional ownership, investors in ESI need not worry about non-fundamental factors such as ownership structure causing large impact on stock prices. Institutional ownership level and composition in ESI is not high nor active enough to significantly impact its investment thesis. However, other important factors we must never forget to assess are the fundamentals. I recommend you take a look at our latest free analysis report on Environmental Clean Technologies to see ESI’s fundamentals and whether it could be considered an undervalued opportunity.
PS. If you are not interested in Environmental Clean Technologies anymore, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
ESI Price at posting:
1.1¢ Sentiment: None Disclosure: Held
(20min delay)
