New week early reads, page-8

I have an opposite view. I believe that there is a good chance that the next TH will be associated with US listing. NC would be tight-lipped about this.

The reason would not be a near-term need to raise capital but rather to have the market cap determined on a US basis, with the ADR market pulling up local share prices, and also to gain a much higher profile for several beneficial reasons.

Investors on the ASX are largely retail, who typically are not in a position to sufficiently understand the emerging technology businesses that they invest in. Their decisions mainly are share price based rather than made on fundamental values. This general lack of understanding and confidence leads to the perception of unfounded higher risk and hence undervaluation, and weaker holdings.

The US markets are very predominantly professional or institutional, with access to a plethora of specialised analysts. They have a greater understanding of each business and are prepared to pay prices that align with higher fundamental values. Higher US market P/Es reflect this.

Nick’s stated wish to increase the proportion of institutional investors in AJX would be consistent with this.

My feeling is that the US listing is in play near-term. (All IMO)