WHY IS A COMPANY 'DEWHURST' WITH TWO LISTINGS ON AIM IN UK GOT 2 DIFFERENT RATINGS? ME NO COMPREHEND? . I.E. DWHA STOCK RATING 84 AND DWHT STOCK RATING 63
Looking at the AIM admission document, I'd suggest that one has voting rights and the other doesn't:
As pointed out, the principle difference between the two is in the capital structure (voting or non voting shares). If you have a look in the company discussions thread, there’s a piece by Tom Firth that goes into this in a bit more detail. Not sure if it still applies, but at that time the Dewhurst family controlled 68.5% of the voting stock so had effective control irrespective of the class of shares regular investors hold.
The significant difference in the aggregate stock ranks for the two share classes stem from this. The underlying company is the same (Q is 99 for both and although I haven’t checked presumably G is too) but the share prices and historic performance of these are quite different so the V and M scores are not the same. This feeds into the different overall Stock Rank.
Depending on the value you put on minority shareholder voting rights you can either see the “A” stock as a cheap way of investing in the company or a potential hazzard of being at the whim of the Dewhurst family. Either way doesn’t seem much benefit for the private investor in holding the T shares (more expensive, pretty meaningless vote value). There’s some discussion of the pros and cons for this in the thread to Tom’s article.
FWIW I have a small position in the A shares.
Gus.
