In theory it shouldn’t really do anything. It’ll help reduce the spreads a bit which will make it easier to buy and sell, but that’s about it. It helps a lot more on the perception side of things. For reasons unknown to me, penny stock is still defined by most as a stock trading under $5 (and this doesn’t seem to account for inflation). So by that logic, even Telstra is a “penny dreadful.” It should really be judged by market cap, but unfortunately that’s not the case, and so to many investors a low price = scary, low quality and high risk. This is mostly in the US, but the US seems to inform the approach of many investors globally. As price is thing most investors look at, it’s best to make a good first impression, especially if you’re trying to get US investors onboard. Not to mention if you need to satisfy certain listing requirements based on price (which again is silly considering price is a fairly useless indicator as stocks have very different numbers of shares outstanding)
PYC Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held
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