Good morning, it’s Paul here with the SCVR for Thursday.Estimated timings – I’m running late today, so will keep going until about 4pm. Apologies for any inconvenience.De-listing riskIn the small caps world, we always have to be wary of the smallest companies, as they sometimes (often without warning) announce their intention to leave the stock market and become private companies (known as de-listing).This usually does instant, and major (typically about -50%) damage to the share price. For this reason, it’s vital to avoid buying micro/small cap shares where there’s a risk of de-listing.Off the top of my head, these are the main reasons (hence risk) of a micro cap de-listing;Running out of cash, and no appetite from the market to provide fresh equity fundingStory stock that has gone stale – i.e. everyone’s heard the story, and it’s never worked, so impossible to get even gullible investors to back it againLittle to no liquidity in the shares – hence there’s no point in being listedCosts – often linked with the other points above – all the various costs of a listing can mount up to £100-200k, even for the smallest companies – e.g. broker/NOMAD, listing fees, PR, NEDs that probably…
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