New equity research service for smaller companies launches
- Developed to address the need for greater coverage of smaller quoted companies
- Complements research from existing providers
- Equity research can form a vital element of a company’s investor relations strategy
PSQ Analytics, a new equity research service that will produce comprehensive, objective and rigorous research coverage of smaller companies on the London Stock Exchange’s Main Market and AIM, launches today. The service will be provided by three independent equity research firms – Argus Research, Independent International Investment Research Plc, and Pipal Research.
Research coverage is central to an informed market. Equity research increases the flow of information available about companies, making it easier for a wider range of potential investors to make their investment decisions. This can result in an increase in liquidity and have a positive impact on share price performance and can ultimately reduce a company's cost of capital.
PSQ Analytics is designed to provide smaller companies with a tool to help them attract investor interest, and is complementary to the existing research services offered by brokers and equity research providers.
Launched this morning, the PSQ Analytics website contains sample research prepared on four companies during a pilot of the service. The site is designed to be accessed by the widest range of institutional and retail investors and can be viewed free of charge.
Martin Graham, Director of Equity Markets at the London Stock Exchange, said:
“Our support for the promotion of equity research is testament to our commitment to develop the structure of our markets to provide issuers with access to the support they need to develop liquidity in their securities.”
“Companies who commission fee-based research are making an important statement about their business, and are demonstrating their commitment to making comprehensive information widely available to investors. By commissioning research, companies enhance their exposure to London’s wide, international investment base and provide investors with additional analysis to inform their investment decisions. This is especially important in uncertain market conditions.”
Further details of the PSQ Analytics scheme:
- The service will be entirely optional for smaller quoted companies on both AIM and the Main Market.
- An initiation/annual report and interim report will be provided each year, as well as coverage of significant news events.
- The research will consist of comprehensive factual information and analysis. It will not offer investment advice in the form of recommendations or price targets.
- The research will be available to a wide audience of investors, free of charge. Institutional investors will be able to access the research through data vendors including Thomson Reuters, Bloomberg, Proquote, Capital IQ, and FactSet. Both institutional and private investors will be able to register to view reports via the new, dedicated website: www.psqanalytics.com
- In order to facilitate cross-company and cross sector comparisons by investors, the research providers have agreed to share common methodologies and produce reports that follow a uniform presentation format. Companies will be allocated to one of the three providers on a pre-determined allocation basis to enhance the impartiality of the research.
- The providers of PSQ Analytics will be responsible for the marketing and promotion of the service and for the production of the research.
Further information on the benefits of equity research and the services available can be accessed via: www.londonstockexchange.com/equityresearch
For further information, please contact:
Press Office +44 (0)20 7797 1222
Notes to editors
About the London Stock Exchange Group:
London Stock Exchange Group is Europe's leading diversified exchange business. It operates Europe's largest and most liquid equity market, holds the number one position in trading ETFs and securitised derivatives, and through its interest in MTS, is the leading platform for the trading of fixed income products.
The London Stock Exchange itself is the world's most international exchange with over 700 overseas companies from over 70 countries on its markets. It has consolidated this position in the last two calendar years, having attracted 202 international companies which raised nearly £30 billion between them. These figures include international companies on AIM, the London Stock Exchange's growth market, which has grown to become the world's most successful market for small and medium sized enterprises with close to 1700 companies at the end of 2007.
Following its merger with Borsa Italiana in 2007, London Stock Exchange Group also now offers post-trade services such as netting, clearing and settlement on an efficient and competitive basis, and a comprehensive range of European bond trading services through MTS.
About Argus Research Company:
Founded in 1934, Argus is a leader in independent equity research, offering in-depth economic analysis as well as forecasts and ratings on more than 700 U.S. and international firms. Argus employs a rigorous six-step process to analyze companies, and provides clients with regular updates through consultation and conference calls, online publications, and more than 4000 individual research reports a year.
About Independent International Investment Research Plc:
IIR is one of the UK’s leading sources for impartial research and strategy for global equities and foreign exchange. The Group has become a leading specialist in the USA for the provision of research on non-US companies. Core product offerings are: GEO Monitor™, providing research on Initial Public Offerings from around the world; Research Oracle™ (www.researchoracle.com ), which provides access to the Group’s international research free of charge; and Global Research, which provides access to financial models, sector analysts, short-term trading strategies, and corporate access services. IIR is a member of the British Olympic Association Council, promoting and assisting Team GB athletes in London 2012.
About Pipal Research Corporation:
Pipal Research Corporation, a subsidiary of Firstsource Solutions, is a leading independent investment research, corporate intelligence and analytics company. Pipal’s financial services offering serves a broad spectrum of clients from buy side to sell side to investment banks and commercial banks, providing a range of services, including equity/ sector/ country research, fixed income research, financial modeling and valuation, forensic accounting, portfolio performance assessment and reporting, investment due diligence, pitch books and other custom research. Pipal’s global delivery model enables it to deliver timely, high quality, objective and cost effective research. Pipal is headquartered in Chicago, USA and has operations in UK, India and Ireland.