What if ?
posted on
Apr 06, 2011 10:34AM
Ultimately Developing a District with Multiple Near-Surface Gold Resources along the +30 km Property in Idaho
Trading Toronto Stock Exchange stocks from the U.S. is often difficult when most US brokerage houses in the U.S have to funnel purchases and sales througn a different symbol, the stock is listed in the US on the pink (or grey) sheets only, when the volume of shares is significantly less than the number traded under the TX, and the share price usually is more or less than the TX symbol's share price. Both purchasing and liquidating is a hinderance. Additionally, some potential investors are dissuaded from buying a TX stock because they do not know that there is a different symbol on the pink sheets they should be using. The mere mention of "pink sheets" has a negative connotation that makes some investors shy away. Lastly, trading a TX stock from the US, whether directly or indirectly through the pink sheets, usually has a higher broker's commission charge for US investors. A consequence of all this is that a significant market in the US for such stocks does not participate in the ownership of shares in a company such as Premium Exploration. I have 2 US acquaintences who decided against wanting to own PEM shares for the above reasons.
What if PEM was listed on a major US stock exchange as well as the TX? Would we open the doors to a host of new investors? Would we see more shareholders, a higher average volume of shares traded, a higher share price? On the day that a TX company, "announces" it is also listed on a major US stock exchange would it help the company and it's existing shareholders? Again, I have felt disadvantaged having to use the pink sheet's symbol PMMEF for our company. In my opinion, based on experience and frustrations in this and other similar situations, I think PEM shareholders and the company would benefit one day from being listed on a US stock exchange. Perhaps less than 5% of PEMMEF shares are traded compared to PEM shares. This strongly suggests that there is a huge untapped market in the US for ownership in Premium Exploration. Many have said that PEM is under owned and needs much broader exposure. I agree. So, what if. . . . . any thoughts, opinions, preferences?
Just something else to ponder as PEM matures, moves into the lime light, and gains deserved recognition.
marwal