The Stock Liquidity Concern
Investors prefer liquidity to lack of liquidity. All other things being equal, an interest in a business is worth more if it is readily marketable or, conversely, worth less if it is not.
Actual discounts for lack of liquidity in your stock is significantly higher than you may realize, typically ranging from 30 to 70%.
There are many reasons a stock may trade infrequently, or experience large price gaps between buyers and sellers: company size; a small shareholder base; a business or industry being generally “out of favor”; consistently unanticipated financial/corporate performance; and inadequate corporate/investor communication practices.
Redwood Capital addresses all of these issues. As the company’s story develops, this will be recognized and appreciated by Canada’s investment decision makers, IF THEY ARE PROPERLY INFORMED.
We strive to increase the liquidity of your shares. It is management's job to deliver the results that drive corporate and financial performance. Together, we ensure that the underlying value of your company is being recognized in the marketplace.