【are threaded barrels legal in washington state】What Kind Of Investor Owns Most Of Krakatoa Resources Limited (ASX:KTA)?

Theare threaded barrels legal in washington state big shareholder groups in Krakatoa Resources Limited (

ASX:KTA

) have power over the company. 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.’

Krakatoa Resources is not a large company by global standards. It has a market capitalization of AU$2.9m, which means it wouldn’t have the attention of many institutional investors. In the chart below below, we can see that institutions are not really that prevalent on the share registry. Let’s take a closer look to see what the different types of shareholder can tell us about KTA.

Check out our latest analysis for Krakatoa Resources

ASX:KTA Ownership Summary January 3rd 19

What Does The Institutional Ownership Tell Us About Krakatoa Resources?

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.

Since institutions own under 5% of Krakatoa Resources, many may not have spent much time considering the stock. But it’s clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

ASX:KTA Income Statement Export January 3rd 19

Hedge funds don’t have many shares in Krakatoa Resources. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Krakatoa Resources

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our most recent data indicates that insiders own a reasonable proportion of Krakatoa Resources Limited. Insiders own AU$775k worth of shares in the AU$2.9m company. It is great to see insiders so invested in the business. It might be worth checking

if those insiders have been buying recently.

Story continues

General Public Ownership

The general public, who are mostly retail investors, collectively hold 59% of Krakatoa Resources shares. This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

We can see that Private Companies own 9.7%, of the shares on issue. It’s hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand Krakatoa Resources 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.

To help readers see past 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. For errors that warrant correction please contact the editor at

[email protected]

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