Why is it desirous for OMAG to be listed on a major exchange? OTC markets have demonstrated themselves to be adequate in raising capital for companies such as OMAG, so I guess we can check this off our list of reasons?

Listing on exchanges such as Nasdaq and NYSE certainly has cachet. Maybe you can argue that it opens the company up to a wider audience of investors, but what value premium over fair value would you speculate that provides, 10-20%? Or will any premium occur, as potentially a proportional number of sellers may also participate?

Or is this a question of efficiency of markets? A perfectly efficient market prices assets at exactly fair value. Should we assume that a market such as Nasdaq, that is more accessible than OTC, is more efficient and therefore will price OMAG closer to fair value? If so, it follows that OMAG which trades OTC (assuming less efficient) can potentially be mis-priced, but mis-pricing can happen in both directions, under valued and over valued. I guess OMAG owners that are proponents of being listed on a major exchange are assuming pricing inefficiency only occurs on the under-value side, therefore not allowing them to realize the full-value of their investment – that seems like flawed logic.

Pricing efficiency is an interesting topic and a recent example germane to this discussion is MDBX. For those not familiar, MedBox is an OTC traded public company that's seen significant price action the past couple years. What fascinates me about MDBX is its Price/Book (mrq = 78.18).

Price/Book is price of the stock divided by book value.

Book value is of course Alton's favorite topic (aside from his rock and silly banter with Bill). Assuming there's nothing fundamentally wrong with the company, Investopedia tells us "A lower P/B ratio could mean that the stock is undervalued", i.e. cheap to buy.

So if memory serves, I think Alton's latest estimate is, once DA is signed, including net present value of future cash flows, a stock price of ~$40/share of OMAG would be a Price/Book = ~1.

Assuming both OMAG and MDBX are good companies with nothing fundamentally wrong, which would you rather buy, the stock with Price/Book of 1 or 78.18?