Equity research service for smaller firms launched

Mar 31 2009 by Tom Scotney, Birmingham Post

A new equity research service for smaller companies has been launched.

PSQ Analytics, an 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, was launched a week ago.

The service is provided by three independent equity research firms – Argus Research, Independent International Investment Research, and Pipal Research.

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.

Martin Graham, the 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.”

The PSQ Analytics scheme will be entirely optional for smaller quoted companies on both AIM and the main market. It will provide an initiation/annual report and interim report every 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 PSQ Analytics website contains sample research prepared on four companies during a pilot of the service.