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30-11-2011, 03:49 PM
Hi RBM,
I've said my piece about dual listings on my blog, so pardon me if I sound like a stuck record.
To me, a dual listing is simply a method of either raising more money (through issuance of TDR, KDR or whatever DR) or to "gain more recognition" and to get a "wider base of investors". This essentially means raising the profile of the Company so that more people take notice of its merits (and flaws?) and hopefully accord it a higher valuation.
But ultimately, it boils down to the quality of the business, no? If a business is good, then it deserves to trade at a premium to competitors in the industry. If it is mediocre, then gravity will naturally pull it back to Earth.
For Techcomp, I don't know the Company well enough, so no comments.
I've said my piece about dual listings on my blog, so pardon me if I sound like a stuck record.
To me, a dual listing is simply a method of either raising more money (through issuance of TDR, KDR or whatever DR) or to "gain more recognition" and to get a "wider base of investors". This essentially means raising the profile of the Company so that more people take notice of its merits (and flaws?) and hopefully accord it a higher valuation.
But ultimately, it boils down to the quality of the business, no? If a business is good, then it deserves to trade at a premium to competitors in the industry. If it is mediocre, then gravity will naturally pull it back to Earth.
For Techcomp, I don't know the Company well enough, so no comments.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/