The Mystery of the Missing Assays26 Jul 2021 11:32
So....'incredible' handheld assays came kind of out of the blue in April (i say out of the blue because it is not where everyone was looking), the SP almost doubles, the corresponding lab assays were due end of May, and its almost August ....for 2 small samples.
Meanwhile another Africa-focused AIM company provided over 200 samples around the same time and results already back
I always expected summer to be a slow one across CB companies- the UAE gets unbearably hot and many of its rich residents swan off to one of their hideout holiday houses.
Going back to my initial point about the SP doubling, we had an informal school reunion on the weekend, most of those who live in London are working in the City in some capacity or another. One is a director of investment banking in a well known British institution. Pretty abrasive and blunt character but clearly knows his stuff- doesnt think much of AIM in general and even less of AIM miners which he considers to be highly speculative and compares investing in them, like playing the lottery. Most PIs in AIM miners are very naive and are easily led by golden carrot dangled in front of them. The people who make money are those who get in and out and rise the waves. Those with sticky fingers, will more likely lose than gain money over a period at time. I guess what he was trying to say: the chance that your sticky fingers gets you an EUA is much less than the regular fluctuations of many junior miners. As much as 'traders' are criticised here, its actually them who are making the money.
He also confirmed what many of us know already- much of the pump and dump crew and their ramping are actually very well coordinated and its easy for them to influence a SP due to relative small volumes on AIM compared to the main index, and also the type of 'high risk' investor who is attracted to AIM is more likely to buy into ramping. Lets face it, most of us in AIM (myself included) are always on about the hopeful 10 bagger, few of us will ever get it. You can imagine as a group, we must be pretty easy to manipulate. 10 bagger isnt a phrase you hear much on the main index for groups for example.
Essentially- the winners are the short term traders who buy and sell over a short period of time, and the CEO/BOD of AIM companies who get themselves paid a salary. The average PI on AIM isnt particularly astute and falls easy prey to them. (Though he didnt mention it- I would actually personally add people who get in very early when mcap is eg £1 million and then sell are the other category who make money). RMS was maybe the most famous example of this in the last year- its SP rocketed and the BOD sold its shares, it quickly plummeted and many clung onto their shares in hope of a rebound that never came. The current SP is around 0.80 and the BOD sold when it was around 5. That, in a nutshell, is the AIM trader.
A bit of a raw assessment that hit a nerve at the time but I have to say he is bang on.
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