AEM share price to hit $50 on listing in NASDAQ?

Will AEM become another legendary fairy-tale in SGX? Amid the bearish market outlook caused by the devastating COVID-19 outbreak, AEM share price defied gravity to smash a record high of $3.37 on 11 May 2020. To illustrate how powerful the rally is: AEM share price stormed from $1.37 on 19 March 2020 to a crazy high of $3.37. This means that AEM share price soared nearly 250% within the span of two months!

AEM share price

In life, what goes up must surely comes down. After reaching the giddy height of $3.37, AEM share price subsequently pulled back to reach the $3.10 price level. Such correction is healthy and should not be seen as beginning of the end for AEM share price. What ignited the surging bull run was largely due to the solid first quarter business results that saw the company hitting a record revenue of $146.8 million and net profit of $36.1 million. Will AEM share price continue its magical run in the face of the market downturn?

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Beyond the stellar financial results, a potential major catalyst may propel AEM share price to the next stage. And that is a dual listing in United States’ NASDAQ. Investors would definitely agree with me that for technology stocks, NASDAQ is the holy-grail.

In my opinion, the end-game for AEM share price is not SGX, but actually NASDAQ. This is because its major customer, widely rumoured to be Intel, is a dominant force in the NASDAQ. With such tremendous potential, the Singapore stock market is definitely far too small for AEM to fulfil its destiny.

As far as I could remember, the last home-grown listed company that was dual-listed in NASDAQ was Creative Technology. When Creative Technology ruled the four seas back in 90s, it’ share price was trading at $60. So, if AEM were to ascend to NASDAQ, hitting $50 should not be a crazy idea.

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. As of 11 May 2020, I am vested in this counter (holding 10,000 shares at $3.35).

AEM share price on bullet train

In recent years, three forces had emerged to become major shareholders of AEM – Morgan Stanley (7%), UBS (4.8%) and Aberdeen (5.6%). Among the trio, Morgan Stanley and UBS are world-class investment bankers known for IPO listings. For investment bankers, I doubt their goals of buying into AEM share price are merely for the capital appreciation or collecting the meagre dividends. In my view, their strategy should be to list AEM in NASDAQ. In doing so, their returns could be at least $100 million.

With three big boys behind AEM, will sovereign wealth fund Temasek Holdings [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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Updated: May 20, 2020 — 7:36 am

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