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MjMilo

02/28/20 3:32 PM

#60 RE: makinezmoney #55

Can We See Significant Insider Ownership On The Vaxil Bio Ltd. (CVE:VXL) Share Register?
Every investor in Vaxil Bio Ltd. (CVE:VXL) 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. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.



Vaxil Bio is a smaller company with a market capitalization of CA$5.3m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions don't own shares in the company. Let's delve deeper into each type of owner, to discover more about Vaxil Bio.



What Does The Lack Of Institutional Ownership Tell Us About Vaxil Bio?
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 could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Vaxil Bio's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.



Vaxil Bio is not owned by hedge funds. Shawn Langer is currently the company's largest shareholder with 5.6% of shares outstanding. Ari Kellen is the second largest shareholder with 5.6% of common stock, followed by Isaac Maresky, holding 3.2% of the stock.
On studying our ownership data, we found that 4 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.



Insider Ownership Of Vaxil Bio
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 Vaxil Bio Ltd.. Insiders own CA$796k worth of shares in the CA$5.3m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.


General Public Ownership
The general public, who are mostly retail investors, collectively hold 85% of Vaxil Bio 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.