Goodwin Plc

As the Financial Conduct Authority prepares to crack down on the power of dominant shareholders following the abuse in Kazakhstan – where ENRC Bumi is based – spare a thought for Goodwin plc. British company highlighted a few months ago as an example of discussions, but Since I got a question about the company from a forum member, I thought it might be interesting to start a separate discussion about it. Goodwin is a small company with a market capitalisation of £1m and is one of the largest companies in the United States to have flown in May. It is also the second largest company in Asia, after the China National Petroleum Corporation (CNOOC). [Sources: 1, 2, 3, 5]

If you were to choose another company with potentially superior financial metrics, you might miss out on an interesting company based on strong financial data. [Sources: 1]

All materials on this website may be out of date at some point and we are not obliged to update these materials. These forward-looking statements are based on management’s opinions and estimates as of the date of this article and on information currently available to management. [Sources: 0, 4]

While it makes sense to study analyst sentiment to know which way the wind is blowing, it is not useful, for example, to study analyst sentiment without knowing the company’s institutional ownership data. [Sources: 1]

You can use Stockopedia’s Share Research software to find the type of shares that suit your investment strategy and goals. To buy shares in Goodwin, you need an account that trades shares and you can search for the shares you want to buy or sell and put money into that account once you have opened the account. If you choose Goodwin, use our low-cost platform, which ranks Barron’s Interactive Brokers as the # 1 for low-cost platforms. [Sources: 3, 6]

Goodwin has a full list of governance systems – including AIM listing systems – which means it does not have the risks associated with that list. In short, Goodwin is a small business at the moment and best left to the people with better information. [Sources: 7]

As Nassim Nicholas Taleb said, don’t tell me what to think, tell him what you have, and behave as he has in his portfolio. [Sources: 1]

One possibility I did not predict is that if directors sell shares, they will be able to put their own money into the company, in which case directors will not be able to sell when Goodwin needs to raise capital. New shares would inevitably be issued at a lower share price, and while this is likely to ensure survival, it is unlikely to happen. The longer the oil prices are lower and lower, since the market is priced in GDWN, the better the price is guaranteed. If you can’t make a purchase and predict it, you can accuse Goodwin and companies like Quindell of fake buy. [Sources: 7]

If the FSA’s plan is approved, Goodwin plc would have to appoint a majority of independent non-executives to his board, cancel the initial listing on the London Stock Exchange and accept a lower London rating for the first time. If Richard Goodwin believes that the company would be able to continue to deliver the same returns to shareholders if it stocked its boards with non-executives, then there is such a thing. Goodwin is paid to put a positive number of liabilities into a working capital structure that receives a lot of co-operation from suppliers only when one starts to worry about its solvency. It would have to push it into the alternative investment market or risk being listed in London on a low grade by standards. [Sources: 5, 7]

There are a few external shareholders who are pleased with their investments in the company, and good work is being done to combat the abuse of board positions in public companies. [Sources: 5]

Now that the FSA is on the warpath, this is a critical point: the company’s management is running the business. Goodwin has no independent non-executive directors and it is not unusual for managers to be found in the company’s directors, whether they are chief executive or founder. The CEO will answer questions to the Board of Management, even if he or she is not a member of the Board. It would be nice if there was insider ownership, as it might suggest that management is ownership-oriented. [Sources: 1, 3, 5]

Insiders and other related parties sometimes have an interest in shares in public companies that are separate from private companies, but it is difficult to draw any conclusions from that fact alone. Consider, for example, the number of shares in a private company and the share price of a public company. [Sources: 1]

If you want to know who really controls Goodwin PLC (LON: GDWN), just take a look at the AIM list. Goodwin is a family-run engineer, making him the second-largest private company in Britain, behind only the London Stock Exchange, which makes it one of Britain’s most valuable companies. [Sources: 1, 7]

Sources:

[0]: https://www.globenewswire.com/news-release/2020/12/07/2140593/0/en/BioCryst-Announces-325-Million-of-Funding-from-Royalty-Pharma-and-Athyrium-Capital-Management.html

[1]: https://www.aol.com/news/could-goodwin-plc-lon-gdwn-060634794.html

[2]: https://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/gdwn-l-goodwin-plc/

[3]: https://simplywall.st/stocks/gb/capital-goods/lse-gdwn/goodwin-shares/news/what-is-the-ownership-structure-like-for-goodwin-plc-longdwn

[4]: https://www.whipmixjewelryinvestment.com/legal/terms-of-use

[5]: https://www.theguardian.com/business/nils-pratley-on-finance/2012/oct/04/goodwin-plc-polar-opposite

[6]: https://www.stockopedia.com/share-prices/goodwin-LON:GDWN/

[7]: https://kitchensinkinvestor.wordpress.com/more/early-watch/goodwin-plc-gdwn/