The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
That should of course be fingers not figures in the dyke.
My take on today is the keyword "placing". Placing actually means you circulate every possible institution going and you get takers if the discount is attractive and the plans look good even in today's uncertain climate. This will include the quick buck spivs hence the dumping of blocks of 50k every so often today. The market makers play their part with the apparent quick rise on opening, which surprise, surprise starts to drift back. They knew what they were doing they had a large order to fill for a genuine investor. I think large orders are going to take some filling and a strong rise is likely short-term after that drive that Newsflow Bill etc. Anyway delighted not to get a return of cash and crystalise a huge loss like I just have with GKO. Holder from the heady days of Cupid 203p, whatever did happen to all those porn sites which were making the money for us then! Incompatible with a plc, this is the 21st century the stuff is free for who ever wants it and the government long ceased putting figures in that dyke.
2.5m out of 427m is not panic selling. I originally bought this at 165 sold at 184 to my regret, bought back in at 224 and am now averaging down. Look at the forward PE ratio and compare to other media companies. This is bargain time.
Spotted The big mistake I made, was I thought I knew a bit about this business having seen from a professional viewpoint the numbers involved at a small private concern, but scale is a different matter. Yes I backed Dobbie. When the price was in free fall he bought at £1.15 and I thought I am going to be a contrarian here and buy as well. That was the start of my further averaging down and more losses. A big lesson learned, but Doobie has a large stake and I feel I have to put my belief in him. He could do worse than take a look at PLE where I still have high hopes, they need cash.
Hi SpottedLurcher With a name like that, I remember you from Cupid Days. Question did you get out or did you do a lot of averaging down and have only recovered due to the meteoric rise in CSI? PS what did happen to Queenie? Yours going down memory lane BP
I should have said 'strong buy', my apologies.
Institutions will not buy until there is a stock market pull back and less savvy investors sell. Less savvy investor sees P/E ratio of 35, loss making, profit for this year, loss for next, low volumes etc. Mr more savvy investor sees PEG next year of N/A and fails to notice PEG 0.3 2017. We read more widely and see the potential. I bought at 89, but it has taken a lot off news flow to lift and I did see it drop to 72 in good markets, that's when the real smart money bought in and nerves of steel are needed. Anyone for RENE?
Hottentot Sadly no, I sold after a rapid rise in 2013 and of course saw what happened afterwards. That is why I made reference to Asos in a later post, where the story is a even bigger disaster of selling too soon, but I think the case is compelling and I am back in to ETO.
Correct that I sold at 1.84 and really for me this is ASOS all over again.
You are correct. I sold mine at 1.67 and am looking at getting back in and I think with the prospects are excellent here.
That averaging down was CUP purchases, if so you must have nerves of steel. Every time I did this the price fell even further and I still need about £1.00, but I am more confident and yes fingers crossed.
I am also a long term holder of Spark and have the opportunity of more in a rights issue at a discount and participating in the open offer for more. I expect the later to be over-subscribed. I cannot believe the way this is falling into place after the CUP disaster. Bill Dobbie started Iomart and that is why I stuck with him when the going got tough in CUP.
Rosiew Correct me if I am wrong, but I recognise your name from Cupid days. Did you sell out or did you like me hang on not wishing to crystalise large losses and said, well a large lump of cash, might as well see what they do with it?
Chomsky You are very active on this board. Currently I am sitting on large losses through many espisodes of averaging down, my catalyst was Bill Dobbie buying at 115 and I said to myself, might as well follow him. I also as an accountant worked with a client that ran an online dating business and he was making a very good return at a much lower level of course. I still do not understand why Cupid failed so dramatically. Anyway, I have stayed on board and am now looking forward to making money on my last averaging down and am excited by the participants, but for what is happening currently, somebody must know something regarding the opportunities they are looking at, otherwise all this rise is just illusory. Any ideas of unlisted companies they maybe meeting? Having said this, the shortage of shares to satisfy this demand means real roller coaster potential.
£1.15 was the price he bought at to show support when the price was in free fall. The rest of his holding would have been acquired for much less considering he was a founder.
Delighted to see the involvement of Spark Ventures, which I also have a holding in. Spark are raising money by a placing and open offer, but are also consolidating on a 1:200 basis. Coincidence? That apart Spark have a great track record for spotting these type of opportunities.
I am contemplating averaging down, but the main problem is, until recently, this share is just iliquid. I always believe no true price without volume. IC was so confident about this share as were many others, but now I am nursing large losses, but I think a rapid recovery is on the cards and an update from Investec would help.
Surely the current market is just the usual 'sell in May and go away', I do not see a doom catalyst yet.
If this is carnage, how would you describe what happened in 1987 or 2008?
That should of course been 115p, apologies for the error.