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Nationwide – who determines the sector classification
Posted 02/02/09
The recent Investor’s Champion note on Nationwide Accident Repair (AIM:NARS) has highlighted a bizarre irregularity with AIM’s sector classification.
Nationwide is, quite correctly in my opinion, classified in the Support Services sector of AIM. By some bizarre quirk of the classification system, Just Car Clinics (AIM: JCR), a business conducting very similar activities to Nationwide (crash repair) is placed in the General Retail sector of AIM. The current reluctance of investors to go anywhere near General Retail would suggest that this anomaly can’t be of much help to poor old JCR. I appreciate that AIM is generally treated as a sector in itself and sub sector classifications are of less relevance than for the main market and larger blue chips. However, with the name Just Car Clinics and the sector classification of General Retail, many prospective investors could be confused into thinking that JCR was in the business of selling cars which is hardly likely to encourage interest at the moment!
This entry was posted 3 years ago and was filed under Nationwide Accident Repair Services.
