First post on AZH - have been a holder since inception - I...

First post on AZH - have been a holder since inception -
I normally don't post much but i get really annoyed when ASX companies cross-list on another developed market exchange because this usually means underperformance for 12 months.

For what its worth, imo this is the biggest drag on the share price currently

Apologies in advance to the regulars for the following rant -

Why does a company cross list?
1. To reduce the cost of equity. Ok, fine - but if i were an investor in Canada, with the joys of the internet, what capital market barriers are there prohibiting me from investing on the ASX? Next to none. Dual listing between developed markets went out of fashion in the 1990s. If anything, companies are removing dual listings as they don't want to pay the additional fees to the exchange, advisors, auditors etc.

2. To increase liquidity as this can increase the share price. Ok, we've been talking earlier about the torrid trading volumes on the TSX... I'll believe it when i see it.

3. For increased M&A activity, so companies can use scrip instead of cash- anyone reckon AZH is gonna make an acquisition soon on the TSX? Perhaps that other Guyana gold play? Yah right.

Or perhaps management wants someone to take AZH over that is listed in TSX: ok, if that happens then this listing makes sense. Lets go find a barrel and lie over it and see what happens shall we? No actually, how about we concentrate on getting to production first instead???

4. To increase public profile - ok, fine if you are BHP putting another listing on to the PNG exchange and you want the government to support you at Ok Tedi... but AZH in Guyana on the TSX in Canada?

Management will say:
"TSX investors like gold, they are better informed than ASX investors, it will reflect the true value of the company"

If so, then remove the ASX listing and just stay on the TSX. No need for two exchanges. Apologies that Aussie investors are not sophisticated enough and there are no gold success stories on the ASX...

Conclusion
Even when the JORC release does come out, this company will underperform other similar companies that are not cross listed until a 12 month window from listing date.

And if its a below expectation JORC release the SP will be pummelled extra hard.

The smart money sold and will re-enter later, and because the market/sentiment is so bad right now i hope we find a floor soon. Fingers crossed it comes by July...

Looks like lots of grinning and bearing it for 2012...