Our £500k placing @ 0.31? Whoever took that would have been looking at a decent return and that was at the point where MGA was first looking like it was exiting administration. This leads me to believe that there is a plan to utilise the tax credits already in place and it will add significant value.
Also DeanWindass mentioned II investment. Most IIs have rules on investing with smaller MC companies( I think £100m+ is the lower limit for many) do ECR may be off limits for many of them.
I suggest you ask the contributors to this board what justified the rise to .7. I doubt you'll get an answer. Personally, I reckon this was ramped to .7 and fell from there because there was no substance supporting it at that SP.
I've sen people ask on this BB a few times before why this reached .7. I've yet to see any explaination. Look at the RNS announcements and the charts and see if you can triggers. As SQUIFF pointed, the dilution of this share has been horrendous so, historically, that needs to be taken into account when looking back at what ECR (and it's previous incarnations) has been worth.
I can imagine ECR makes sense if you are part of a well funded cartel or rampers hammering BBs trying to get newbies to invest creating rises you can sell into. It's not a difficult share to manipulate hence it's poor reputation ...
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