4 Problems when you Hold a Delisted Share
As we are expecting Steinhoff to delist soon.
What if you continue holding shares in the company?
From my experience when a company goes from listed to private it means a few things.
1. Liquidity issues
Volume will be low where you might not be able to exit a position with a rightful buyer or sell
2. lack of transparency
This leads to uncertainty for the business as shares holders won't have the transparent information like they would with a public company.
3. Valuation
With a company listed privately, this can lead to investors pricing in the business rather than shareholders. This can result in slower performance in the price of the share.
4. Market perception
The fact that a company has been delisted can be seen as a negative development by some investors, who may view it as a sign of financial distress or poor management. This can affect the market's perception of the company and its shares, which can in turn affect the value of your investment.
Do you have a fundamental analysis question?
Let me know in the comments and I'll answer in simple terms.
Trade well, live free.
Timon
MATI Trader
What if you continue holding shares in the company?
From my experience when a company goes from listed to private it means a few things.
1. Liquidity issues
Volume will be low where you might not be able to exit a position with a rightful buyer or sell
2. lack of transparency
This leads to uncertainty for the business as shares holders won't have the transparent information like they would with a public company.
3. Valuation
With a company listed privately, this can lead to investors pricing in the business rather than shareholders. This can result in slower performance in the price of the share.
4. Market perception
The fact that a company has been delisted can be seen as a negative development by some investors, who may view it as a sign of financial distress or poor management. This can affect the market's perception of the company and its shares, which can in turn affect the value of your investment.
Do you have a fundamental analysis question?
Let me know in the comments and I'll answer in simple terms.
Trade well, live free.
Timon
MATI Trader
✅ Facebook:
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
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