Analysis of Substantial Shareholders

- assist in picking stocks for trade or invest on long term, and to adopt suitable trading style like position and/or swing trading
- may provide some clues of the market behaviour of a particular listed company
- look at the names of the Institutional Investors and their shareholdings, and the substantial shareholders (5% or more shares)

1) If the company does not have institutional investors
- this company will not be on the radar to be covered by any broker or analyst
- any extraordinary market activities would be from the insiders or individual syndicates whose names may not be in the list of substantial shareholders of 5%, and the retail investor will not know who are the big buyers and sellers.
- reading the price and volume will show that there are speculative and syndicate activities in the stock
- if a retail trader is alert enough to spot those stocks and able to read the chart well, there will be profit opportunities to follow the MM, if there is a syndicate behind the stock.
- if the stock price of a company never moves with volume for years, and reporting steady profits and dividend, that stock does not have syndicate, and the insiders are not interested to "goreng" the stock.
- should be careful as the stock could be fundamentally unattractive for fund participation

2. If the stock has Institutional Funds
- differentiate the type of funds - GLICs (EPF, Tabung Haji, and PNB) or other local and foreign funds.
- GLIC funds (other than EPF which had distributed their investments to various funds for trading) will probably not participating in speculative trading

3. The stocks that are often mentioned by brokers and analysts
- perfect candidates for speculative trading by retail investors because of the high coverage and publicity in newspapers, brokers websites, and internet forums and blogs
- have reasonable fundamentals, and seasonal enough for MM to create theme plays
- analysts will spread news of a theme play, often rotational themes, or any other news that will attract retail investors to participate
- news will be spread around by remisiers, newspapers and internet, retail investors without technical knowledge will probably lose more money after gaining a little
- secret of successful trading in these stocks will be thinking ahead to follow the MM

Category of shareholder
Holding less than 100k
- retail traders and investors
- provide the normal volume of activities in the absence of market makers
- will get excited over tips, research reports and recommendations from analysts, brokers and remisiers

Holding above 100k but less than 5%
- high net worth long term individual investors, unit trust funds, foreign funds, proxies of insiders, syndicate groups and smart money - the market makers and market movers
- move the market and they are the market makers who will feed good or bad news of the company or take advantage of company news and announcements to carry out accumulation or distribution activities
- whenever we see high volume, they are in action, when we see low volume, they are not active, but could be quietly collect stocks that they intend to manipulate
- when we find poor performance in the latest quarterly results, high volume could be due to outflow by funds rather than manipulation by market makers
- if there are news of good results and recommendation by brokers, distribution activities will be coming, as this information would have been taken long time in advance, and accumulations have carried out by the big players

Holding more than 5%
- insiders and government investment linked fund like Khazanah, Tabung Haji, EPF, ASB & PNB
- long term investors for strategic reasons and not likely buy or sell other than transfers
- most insiders have proxies planted in category above to manipulate the market