ASX:GTR Insider_trading Mar 13th 18
General Public Ownership
A big stake of 40.94% in GTR is held by the general public. With this size of ownership, retail investors can collectively play a role in major company policies that affect shareholders returns, including executive remuneration and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.
Private Company Ownership
Potential investors in GTR should also look at another important group of investors: private companies, with a stake of 28.65%, who are primarily invested because of strategic and capital gain interests. An ownership of this size indicates a strong financial backing and has the potential to influence GTR’s business strategy. Thus, investors should dig deeper into GTR’s business relations with these companies and how it can affect shareholder returns in the long-term.
Next Steps:
With a low level of institutional ownership, investors in GTR need not worry about non-fundamental factors such as ownership structure causing large impact on stock prices. However, if you are building an investment case for GTR, ownership structure alone should not dictate your decision to buy or sell the stock. Rather, you should be examining fundamental factors such as GTI Resources’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 GTR’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 GTR 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 GTR’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.