AIM Italia - Ernesto Mocci - Methorios Capital

AIM Italiatraded ,000)Dailyvolume (shares‣ From feedback of fund managers and brokers in Italy and the rest of Europe, the main issue/hesitation is the lack of liquidity onAIM Italia. The current level of trading on the market segment make short term speculative buying very difficult. Thereforespeculative investors and stock pickers shy away from investment on the AIM Italia market segment, leaving only those who have amedium to long term investment horizon.‣ With respect to retail investors, a number of banks that provide client equity trading services in Italy do not enable access to the AIMItalia markets on their investment platforms. The reason being is that many banks consider investment in AIM Italia stocks as highrisk and do not allow their clients to access to the listings despite the exchange determining them to be suitable for retail levelinvestment. This is perhaps an area where Borsa Italiana could work with large banks for them to fully understand trading on theMTF and facilitate greater retail investment.‣ From analysing the volumes we are able to see that trading on AIM Italia experienced a significant upturn in growth from the end of2009 till the end of March 2010, with the listing of 5 new companies in that period. Following onwards there was a lull in tradingactivity until mid July, a period that saw the market suspension of House Building.‣ With a number of new listings in the last 12 months, there has been a significant growth in the average level of trading activity, whichhas so far remained more constant in terms of trading volume than the previous flurry from late 2009 to mid 2010.1.4001.2001.0008006004002000Data a08/05/09 Neurosoft08/05/09 IKF17/06/200901/08/09 VrWay29/07/2009 9* As at July 1, 201109/09/2009 921/10/200923/12/09 TBS Group29/12/09 House Building*02/12/200919/01/2010 0Volume on AIM Italia*16/03/10 PMS16/03/10 Poligrafici Printing23/03/10 Fintel Energia02/03/2010 015/04/2010 027/05/2010 014/07 Methorios Capital08/07/2010 019/08/2010 022/10 Vita Società Editoriale30/09/2010 019/01 Unione Alberghi Italiane22/12 First Capital11/11/2010 023/12/2010 007/02/2011 127/06 Made in Italy121/03/2011 1Source: Bloomberg04/05/2011 115/06/2011 117