Many large-cap energy companies domiciled in Europe with primary listings in either London or Paris are threatening to move to the U.S. and switch their primary listings to the NYSE under the belief that Trump will cause their market valuation to increase by 100% or more. With Trump being elected U.S. President, Shell plc (LSE: SHEL) warns that if by mid-2025 its valuation doesn't improve, it will exit the U.K. taking away 10% of London's entire market cap!
France is also feeling the pressure. In April 2024, TotalEnergies (PAR: TTE) Chief Executive Patrick Pouyanne said, "U.S. shareholders are buying, European shareholders are not." He described how despite his primary listing being in Paris, his Paris share price gets adjusted each day based on where their American Depository Receipts (ADRs) trade in the U.S. Last month, the board of directors of TotalEnergies approved a plan to convert the American Depository Receipts (ADRs) currently sold on the NYSE into company shares "if technically feasible" in a bid to boost liquidity and ease purchases by U.S. investors.
Shell Chief Executive Wael Sawan is growing frustrated that despite perfectly executing his turnaround plan, he is seeing no improvement in the gap between the valuation multiple that Shell is trading at compared to the much higher valuation multiples of its U.S. listed oil and gas competitors. Shell is now looking at all options including a possible move from the London Stock Exchange to the NYSE. Sawan vows that by mid-2025 if the valuation gap remains, Shell will leave the London Stock Exchange and move to the NYSE. This would be devastating to the U.K. economy, as it would cause the London Stock Exchange to instantly lose 10% of its total market cap. The British cannot allow this to happen as it would cause the Pound to collapse to new all-time lows!
Although oil and gas companies that move from Europe to the U.S. may look forward to an immediate 100%+ increase in market valuation, this increase is miniscule compared to the valuation increase that Celtic plc (LSE: CCP) would see if it decides to move its listing to the NYSE or NASDAQ.
Already, NIA has heard from hundreds of its members who desperately want to invest into Celtic shares, but don't have the ability to do so at their current U.S. broker. A move for Celtic Football Club from the London Stock Exchange to the NYSE or NASDAQ could possibly result in an immediate 500% increase in the market valuation of the company. Afterall, American investors currently have only one choice of a single U.S. listed European football club available for them to invest in: NYSE listed Manchester United (MANU).
Over the last 10 years, MANU has increased its revenue by a total of only 24.50% vs. Celtic plc (LSE: CCP) increasing its revenue by a total of 87.22%. With 3.56x stronger revenue growth and a history of championships similar to MANU, you would expect Celtic to trade at a higher enterprise value/revenue ratio than MANU, especially considering that Celtic remains successful today as reigning Scottish champions. Celtic has a current European ranking in the UEFA Champions League of 15th place vs. MANU failing to even qualify for the UEFA Champions League.
Instead of Celtic trading at a higher multiple than MANU like it deserves, Celtic has an enterprise value/revenue ratio of 0.79 vs. MANU's enterprise value/revenue ratio of 4.252.
MANU's valuation multiple is currently 5.382x higher than Celtic because it has a NYSE listing making it easy for any American investor to purchase MANU shares using any brokerage account. If Celtic Football Club were to switch its primary listing to the NYSE or NASDAQ, it would immediately begin to trade for at least 5-6x revenue. A recent increase in Celtic's U.S. OTC trading volume prior to and during their July 2024 USA tour should be a strong indicator to Celtic Chairman Peter Lawwell and largest shareholder Dermot Desmond that there is a high level of investor interest in the U.S. of Americans who would love to capitalize on the explosive growth ahead for Celtic FC.
With a crucial win over RB Leipzig in the UEFA Champions League, Celtic have taken a major step toward re-establishing themselves as contenders in European football. The €4.9 million in free bonus money that Celtic will receive next week will help to further boost its cash reserves to new record highs, all thanks to the strong leadership of Mr. Lawwell and Mr. Desmond who are carrying on the success of Scottish Canadian hero entrepreneur Fergus McCann who made all of this possible when he saved the club in 1994 when it was one hour away from liquidation by the Bank of Scotland one of the only commercial banks in the world that is allowed to print its own money.
In Scotland less than 10% of households invest in shares, but in the U.S. a record high 58% of households invest in shares, and we all love Celtic (LSE: CCP) and believe its shares are poised to outperform nearly all U.S. listed companies.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is meant for informational and educational purposes only and does not provide investment advice.
Preparing Americans for Hyperinflation
