Mining companies thinking of switching exchanges to get more appreciative shareholders should think again

John Robertson

PortfolioDirect

Mining companies thinking of switching exchanges to get more appreciative shareholders should think again. Far from being greener, the other man's grass is just as brown and patchy based on a comparison of the distribution of returns for companies listed in Australia and those on the AIM in London. For example, the median annualised return among stocks currently listed on the ASX in the three years from the top of the market at the beginning of 2011 was a negative 42% (with a standard deviation of 26%). The median return amongst the AIM stocks was 42% (with a standard deviation of 25%). Thirty six percent of London stocks dropped 90% or more during 2011-2013 compared with just over 20% in Australia.


John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...

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