What Kind Of Shareholders Own DIOD Maker of Eco-Friendly Equipment and Nutrition Public Joint Stock Company (MCX:DIOD)?

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Simply Wall St

Thu, Aug 29, 2019, 3:28 AM

Every investor in DIOD Maker of Eco-Friendly Equipment and Nutrition Public Joint Stock Company (MCX:DIOD) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. 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.'

DIOD Maker of Eco-Friendly Equipment and Nutrition is not a large company by global standards. It has a market capitalization of RUруб416m, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutions are not on the share registry. Let's delve deeper into each type of owner, to discover more about DIOD.

View our latest analysis for DIOD Maker of Eco-Friendly Equipment and Nutrition

MISX:DIOD Ownership Summary, August 29th 2019

What Does The Lack Of Institutional Ownership Tell Us About DIOD Maker of Eco-Friendly Equipment and Nutrition?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

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. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. DIOD Maker of Eco-Friendly Equipment and Nutrition might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

MISX:DIOD Income Statement, August 29th 2019

Hedge funds don't have many shares in DIOD Maker of Eco-Friendly Equipment and Nutrition. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of DIOD Maker of Eco-Friendly Equipment and Nutrition

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

It seems that insiders own more than half the DIOD Maker of Eco-Friendly Equipment and Nutrition Public Joint Stock Company stock. This gives them a lot of power. Given it has a market cap of RUруб416m, that means they have RUруб285m worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, with a 31% 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand DIOD Maker of Eco-Friendly Equipment and Nutrition better, we need to consider many other factors.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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