Why Nexans Hellas SA.’s (ATH:ALKA) Ownership Structure Is Important

In This Article:

In this article, I will take a quick look at Nexans Hellas SA.’s (ATSE:ALKA) recent ownership structure – an unconventional investing subject, but an important one. The impact of a company’s ownership structure affects both its short- and long-term performance. Since the effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company’s corporate governance and accountability of shareholders, investors should take a closer look at ALKA’s shareholder registry.

Check out our latest analysis for Nexans Hellas

ATSE:ALKA Ownership_summary May 7th 18
ATSE:ALKA Ownership_summary May 7th 18

General Public Ownership

A substantial ownership of 100.00% in ALKA is held by the general public. 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. This 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.

Next Steps:

A large shareholding of ALKA by the general public could mean higher market liquidity to buy and sell shares for retail investors, and also the potential to have more influence over company policies as a collective. However, ownership structure should not be the only focus of your research when constructing an investment thesis around ALKA. Instead, you should be evaluating company-specific factors such as Nexans Hellas’s past track record and financial health. I urge you to complete your research by taking a look at the following:

  1. Financial Health: Is ALKA’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

  2. Past Track Record: Has ALKA been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look at the free visual representations of ALKA’s historicals for more clarity.

  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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 pass 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.