TSXV:AUN.H - Post by User
Post by
Bentonstockson Jun 23, 2007 10:06am
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Post# 12988670
Promotion info...
Promotion info...From: https://www.financialinsights.org/articles/article05-1020.asp
Article by Dr. Richard Appel.
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Promotion is a dirty word to many people! However, in this industry it is truly a necessary evil. This is not to suggest that either unethical or illegal dissemination of information should be condoned. I am referring to professionally designed “market awareness” programs. It is unfortunate, but in order for a company’s share price to attain a sufficiently high price commensurate with the value of its projects, the public must know its attributes. We as investors cannot intuitively sense whether a company is overvalued or is working on a great project. We must first be made aware of its existence, and then learn the details of its assets to recognize its potential.
In this industry it doesn’t follow that a company’s share price must reflect its underlying value! There are far too many stocks for even the most dedicated and driven analyst or investor to follow. This creates a condition where many companies are overlooked and undervalued. For this reason, I believe that it is mandatory for a company to contact investors and get the word out. In this fashion buying will enter its market and hopefully move its price to a fair value.
If a market awareness program is properly performed it may allow the company to execute an equity financing at a higher price than would otherwise be the case. The result will be less stock dilution, where fewer shares will have to be issued. This in turn will render the existing ones more valuable.