Foreign deals are valued differently than US deals. The goal for the foreign company is not to get listed on the OTCBB but to gain listing on an exchange like AMEX or NASDAQ. To do this they have to demonstrate earnings of $.30 to $.40 a share so they can eventually get their stock to trade at $3.00 to $4.00 per share. This is great for the investors because they end up investing in a company at a three or four price earnings (“PE”) ratio on a pre-money basis.
Now here is the cultural twist. Even though the foreign company understands the criteria for qualifying for an exchange listing they are completely against spending money for investor awareness programs which, if implemented correctly, improve the stock price. Foreign company management does not believe in spending money on things that are not tangible.
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