De-listing and Suspension woes

Sunday, 26th April 2009 10:14 - by Boredmum

When I originally started investing in shares, I figured some prices would rise and some would fall. I also realised that there may be the odd company that just wouldn’t make it and go bust. I felt that, overall, the risks were low. What I didn’t consider was the possibility of de-listing or suspension. These are like ‘No Man’s Land’, totally cut-off from any news and you not knowing what is happening with them. At least when your shares are active you can see the price movements and read news releases (RNS), so you know what is happening with the company. You even have your fellow investors to communicate and discuss with on bulletin boards. When your company de-lists, unfortunately the lines of communication are dead. You will also find it difficult to trade shares. There are services available through your company where they will provide a match service if they have a buyer and you want to sell. Technically, you still own a share in the company but unfortunately you can’t follow its worth. Suspension is another feature that throws you into ‘No Man’s Land’. You have no idea what will happen with the company. Will they delist? Resume trading again? Go bankrupt? Will I lose all of my investment? Personally, I have Newport Networks (TIDM code: NNG) and Cambridge Mineral Resources (TIDM code: CMR) as de-listed shares. NNG have not found it financially viable to stay listed at an approximate cost of £100,000 a year, when their last revenues were barely more than that. CMR had a loan payment called in after they defaulted, then they lost their nomad and were not able to remain listed (they could possibly resume their listing at some point). Irvine Energy (TIDM code: IVE) are suspended. Again, a loan payment has been called in after a default. Shall I ever see a return from these companies? Well, I am afraid that I am in that ‘No Man’s Land’. I have no official news and I truly don’t know. I will have to wait and see. Do any of you have similar experiences?