Lacey22 Jun 2011 00:38
My first thoughts Lacey as I look at MBO is the size of the spread, 5.25-7.00, thats 33.33%, far higher than I would consider investing at, I mean, if you multiply the sp by 100, would I be happy at buying shares at 700p knowing that to sell them I would only get 525p?!. I am sure there is good potential for MBO, but at present it is difficult for me to see the wood for the trees when comparing MBO to MONI and PSQ etc. The free float is around 22%, I believe. There are a no of factors I like to look at with any company, how many shares do the directors have?, who else has an interest in the company?, what is the mkt. cap?, no of shares in issue?, does it make a profit?, is the share price at a relative high?, i.e is it within 20% of its year high?, if it is near the year low then there is usually some worrying reason as to why it is. Does it pay or is likely to pay a dividend?, what or who is the competition?. Some of these questions are more important than others and don't all need to be positive, especially with a young company. Personally, I feel uneasy these days at investing in any company with a sp anything below 20p, although I do make an occasional exception. At 7p it is worth only 1/6th of a first class stamp, (sorry, I am not meaning to be derogatory to anyone), but of course I fully accept that it is early days and the sp may rocket up. I wish all those invested in MBO well and success. I will add it to my watch list, but I am fully invested at present. Regards.