The NEX is the place where companies who can't meet the listing requirements for a Tier-2 listing on the TSX Venture Exchange are sent to. A company can't qualify for a NEX listing unless it's been booted off the Venture. This exchange is truly the bottom of the barrel for Canadian listed companies.
There are 157 companies listed on the NEX, and about a quarter of them are under suspension. Many of the shares don't trade at all during the day. It's not uncommon for a listed company to have a total market cap (minus escrowed shares) of less than $1 million. There are a few companies whose market cap is about the price of a not-very-expensive city house. An eye-popping trade is one where $10,000 worth of stock has changed hands.
So why care?
Because a NEX company that moves is one that sticks right out of the pack. So, there's something to watch when a NEX-listed company has an active trading pattern. There's also the faint hope that one of them may crawl back up to a Venture listing.
Besides: where else can you see a stock whose daily trading volume times the trade price is less than the cheapest discount brokerage's minimum commission?
The following link will take you to the TSX Nex Home Page.
NOTE: I am not affiliated with the TSX, nor is this blog.
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