Is the NZAX Broken ?

[MAC]

It's an all too familiar story.

A high tech startup company like Izon going abroad without even giving local investors an opportunity to consider, instead they are straight off to the London AIM exchange.

http://www.stuff.co.nz/business/industries/9811932/Nano-tech-firm-off-to-UK-chasing-investors

[Harvey Specter]

Yes - I understand they plan to replace it but the new CEO hasn't said much after that first statement.

[geo]

Yet another budding innovative New Zealand company going straight to the UK AIM market.

http://www.scoop.co.nz/stories/BU1405/S00162/rex-bionics-raises-10m-pounds-in-back-door-listing-in-london.htm

I’m seriously starting to think I’ll go there too, there’s not much prospective coming to the NZAX !

Hi Mac. What's your take on[ Wherescape ] Data software company looks very interesting and considering listing on the NZX.

The reason I didn't invest in XRO because I don't really understand teck stocks but the business model of Wherescape looks good been operating around 12 years, The NZ investment firm Pioneer Capital has invested well north of 10m in return for a 35.5 per cent stake in the business which has offices in USA. Britain.India.NZ.

Wherescape has been profitable from day one and, prior to Pioneer Capital investment had self-funded it's growth. Hope they list i'll be in.

[MAC]

I have to say that component tech products are not my area of expertise and I know I would thus struggle a little in valuing the IPO, so probably not for me, but it would be good to see them list here rather than through their UK or US offices.

Looks like they are growing a good customer base quite quickly Geo !

500 customers in 20 countries and ticking.

https://www.wherescape.com/home/plain-english-overview/

[geo]

I have to say that component tech products are not my area of expertise and I know I would thus struggle a little in valuing the IPO, so probably not for me, but it would be good to see them list here rather than through their UK or US offices.

Looks like they are growing a good customer base quite quickly Geo !

500 customers in 20 countries and ticking.

https://www.wherescape.com/home/plain-english-overview/

Thanks for that Mac maybe someone out there would like to start a new thread on Wherescape.

[MAC]

I wonder what NZX management are doing about encouraging RocketLab to list here when they do, probably nothing, they do seem to prefer innovative NZ companies to go straight to the AIM.

http://www.nzherald.co.nz/business/news/video.cfm?c_id=1503079&gal_cid=1503079&gallery_id=144498

Gawd, Imagine the EPA consent response, “we will absolutely crush you unless you can demonstrate there is unequivocally no uncertainty that your rockets will not hit a fish when returning to the ocean”.

[Harvey Specter]

I wonder what NZX management are doing about encouraging RocketLab to list here when they do, probably nothing, they do seem to prefer innovative NZ companies to go straight to the AIM.

http://www.nzherald.co.nz/business/news/video.cfm?c_id=1503079&gal_cid=1503079&gallery_id=144498

Gawd, Imagine the EPA consent response, “we will absolutely crush you unless you can demonstrate there is unequivocally no uncertainty that your rockets will not hit a fish when returning to the ocean”.

Too late. Khosa(?) has invested and already taken them to the US like Lanzatech.

[Harvey Specter]

The Moose Fund wishes it had enough money for its owner to be considered a Sophisticated Investor so that it could invest in such startups to keep them in NZ. One day, we'll see... ;)The Sophisticated Investor rules are very restrictive. I am trying to side step at the moment by coming under the Habitual investor category, not that my investment sizes are enough to keep companies in NZ. Provide my Grandparents/parents dont spend all my inheritance, I think I am safe trying to balance out their extremely conservative investment style by taking on a bit more risk. It is my version of charity as I think jobs in NZ is one of the most important things we can do for this country.

[Leftfield]

The Moose Fund wishes it had enough money for its owner to be considered a Sophisticated Investor so that it could invest in such startups to keep them in NZ. One day, we'll see... ;)

A nice dream..... and nothing happens unless you dream it first. I wish the Moosie Fund well (the next Warren Buffett maybe!?)

[simla]

The Moose Fund wishes it had enough money for its owner to be considered a Sophisticated Investor so that it could invest in such startups to keep them in NZ. One day, we'll see... ;)

Hey, Moosie. Why do you think I've been beating the BLT drum loud and long? I've been doing my tiny bit to help keep a worthwhile startup in NZ. And now that the outlook is good, who is supporting it? Still almost nobody.

And then you wonder why these places go offshore? I've often posted about the Blis investors helping to build NZ for the future, but it seldom gets any bites.

These startups will stay in NZ when the INVESTORS encourage them to. But so long as the NZ sharemarket it dominated by short term traders, how are they going to feel the love? But your comments suggest you are starting to mellow and see why we need long term investors.

And I also posted about ESG investing recently, and got no bites. Look it up anyone who hasn't heard of it. It's a huge trend sweeping the world. Anyone who watched Nigel Latta last night will have seen the creation of the Working Poor by companies who are only ever pressed to create profit instead of investing in the social fabric of society at the same time. ESG is a push back by investors who want to live in a society worth living in.

Great to hear you wanting the companies to stay on shore in NZ. But investors in NZ really don't seem to get that they play a hugely central role in the creation of our future. Way too many people are just trying to get on the last hot tip. That doesn't create a future. I rant on about this sort of thing on Sharetrader from time to time because it is people who want to invest who have a HUGE impact on how NZ's future turns out. With money comes responsibility .. in my opinion.

[simla]

ps I am very grateful to the Blis investors who clearly ARE trying to create a future.

[couta1]

Simla I only hold NZ stocks and bonds and don't intend changing to overseas ones, probably missing out on a lot of potential profit but I love NZ and being loyal and helping our great little country grow.

[Balance]

Simla I only hold NZ stocks and bonds and don't intend changing to overseas ones, probably missing out on a lot of potential profit but I love NZ and being loyal and helping our great little country grow.

Just be careful of those who use patriotism as a guise to enrich themselves.

The finance companies were the best case in point - leave your money with us, they advertised, and help NZ grow!

As Lincoln said : 'Patriotism is often the last refuse of scoundrels."

[couta1]

Just be careful of those who use patriotism as a guise to enrich themselves.

The finance companies were the best case in point - leave your money with us, they advertised, and help NZ grow!

As Lincoln said : 'Patriotism is often the last refuse of scoundrels." Strange you should mention that as I did lose 40k in the finance company collapse of 2008 but then again that was a global collapse not just a local one.

[Balance]

Strange you should mention that as I did lose 40k in the finance company collapse of 2008 but then again that was a global collapse not just a local one.

Most of the finance companies collapsed due to fraud - directors and management helping themselves to depositors' funds to speculate in the markets.

The GFC was used as an excuse for their failures.

[Harvey Specter]

Hey, Moosie. Why do you think I've been beating the BLT drum loud and long? I've been doing my tiny bit to help keep a worthwhile startup in NZ. And now that the outlook is good, who is supporting it? Still almost nobody.

These startups will stay in NZ when the INVESTORS encourage them to. But so long as the NZ sharemarket it dominated by short term traders, how are they going to feel the love? But your comments suggest you are starting to mellow and see why we need long term investors.Agree and is one reason why I support the IPO's and SPP by the start up companies like Blis and WYN, though I am pulling back a bit now as I think some founders are getting gready with their valuations.

I dont think the NZ sharemarket is dominated by short term traders (maybe in the spec stocks). It is dominated by old rich people who want 'safe' long term investments like the power and tel co's.

[Balance]

ps I am very grateful to the Blis investors who clearly ARE trying to create a future.

You should be aware that BLT is viewed with disdain and mistrust by most in the market because it was a classic pump and dump IPO.

I was there when it happened and shares issued at 20c were allotted very selectively, there was a lot of pumping before the shares listed and when they listed at $2.00 plus, most took their profits leaving those pumped to carry the 'long term' investment.

Hard for any company after that to attract real support.

[Harvey Specter]

You should be aware that BLT is viewed with disdain and mistrust by most in the market because it was a classic pump and dump IPO.

I was there when it happened and shares issued at 20c were allotted very selectively, there was a lot of pumping before the shares listed and when they listed at $2.00 plus, most took their profits leaving those pumped to carry the 'long term' investment.

Hard for any company after that to attract real support.Are you refering to cheap pre IPO allotments? So similar to SNK then. That is the sort of stuff that ruins it for those that want to do it properly.

[Balance]

Are you refering to cheap pre IPO allotments? So similar to SNK then. That is the sort of stuff that ruins it for those that want to do it properly.

Both pre-IPO allotments and IPO allotments.

It was an orgy of self-enrichment.