How much of a “hometown discount”, if any, do you give to TSE listed companies?

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I was reading your recent PLC report (love the PDF format BTW), and you mention how it’s the only publicly listed company in the industry. You do now mention SCI, which I appreciate, because I think it’s an important to (and I don’t think you did before). It got me thinking, though, about this issue more broadly. While there are many good reasons to prefer a Canadian company in many instances (currency fluctuations, exchange rates, withholding tax on dividends if not in an RRSP, etc), at the end of the day, IMO, it doesn’t matter that much what exchange a company is traded on, especially in a case like these two where they both operate in both the US and Canada. So, yes, PLC is the only publicly listed company in Canada, but who really cares if there is at least one obvious comparison/competitor on a US exchange that almost everyone has access to and that we can hold in registered accounts. I’m wondering about your thought process on this. Thanks.

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Asked on May 2, 2022 9:22 am
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Ok good to know. Thanks.

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Posted by GratefulDawg
Answered on May 3, 2022 3:52 pm
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Hi there. The only real benefits would be as you've stated. The hometown currency and the withholding tax. One thing you could consider as well as the dividend tax credit. A dividend paid by SCI would be taxed as normal income (if it isn't tax-sheltered of course) whereas PLC would be eligible for the dividend tax credit.

But overall, if SCI were the better company (and in my opinion it isn't) I'd be holding SCI over PLC. So, we don't put much bias into it.

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Posted by Dan Kent
Answered on May 3, 2022 3:46 pm