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Every investor in Singapore Myanmar Investco Limited (SGX:Y45) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I quite like to see at least a little bit of insider ownership. As Charlie Munger said ‘Show me the incentive and I will show you the outcome.’
Singapore Myanmar Investco is not a large company by global standards. It has a market capitalization of S$50.9m, which means it wouldn’t have the attention of many institutional investors. In the chart below below, we can see that institutions own shares in the company. Let’s take a closer look to see what the different types of shareholder can tell us about Y45.
See our latest analysis for Singapore Myanmar Investco
What Does The Institutional Ownership Tell Us About Singapore Myanmar Investco?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors own 46.1% of Singapore Myanmar Investco. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at Singapore Myanmar Investco’s earnings history, below. Of course, the future is what really matters.
We note that hedge funds don’t have a meaningful investment in Singapore Myanmar Investco. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Singapore Myanmar Investco
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
It seems insiders own a significant proportion of Singapore Myanmar Investco Limited. Insiders have a S$21.5m stake in this S$50.9m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.