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What Will Happen Once Yukon-Nevada Gold Is Listed in the US?

September 12, 2012 | About:
I received a lot of emails asking me if I think the stock price will drop once the stock is listed in the US. Here is my response. Let’s analyze this a bit.

Will the listing on the US exchange make the operations of the company better or worse?

It will have absolutely no effect. The company will produce X number of ounces whether it is listed on the A exchange or B exchange. It doesn’t matter.

Will the name change from Yukon-Nevada to Veris Gold change the company’s operations?

Again, it does not matter. Because they are selling Ketza, having Yukon in the name probably does not make much sense.

Could a listing on the US exchange make the stock price go up?

Well, fundamentally nothing will change but technically something will. A listing on the US exchange will allow more people to buy the stock. But will they buy it in the short term? The company says that there are funds that want to buy the stock but can’t until it is listed in the US. It would be nice if they did buy it but from my experience, people like to talk a lot and do little. I don’t trust these funds until they prove themselves. So I would like to see the stock price to go up but I am skeptical that it will. I would love to be proved wrong.

Could a listing on the US exchange make the stock price go down?

Fundamentally, it should not unless the fundamentals deteriorated. But fundamentals have nothing to do with anything here. If you have maniac shareholders as your partners, as you have here, anything is possible. So you asking me a question about whether the stock price will drop is equivalent to you asking what the maniacs are going to do once the company is listed in the US. I don’t know what the maniacs will do because I am not a doctor for mentally ill individuals.

About the author:

Mariusz Skonieczny
Mariusz Skonieczny is the founder and president of Classic Value Investors, LLC, an investment management firms that builds and manages customized investment portfolios for its clients. He is the author of Why Are we So Clueless about the Stock Market? Learn How to Invest Your Money, How to Pick Stocks, and How to Make Money in the Stock Market. Email: mskonieczny [at] classicvalueinvestors [dot] com. Webpage: www.classicvalueinvestors.com

Visit Mariusz Skonieczny's Website


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