RE: mick.b24 Feb 2019 14:10
TROAJAN
It's fund raising that does most small AIM stocks in
They can't raise funds in the normal way as have little/no collateral apart from their own shares.
So fund raising is extremely expensive.
Take SXX developing a massive mine...they are being charged 10%+ interest on millions of private finance.
It's these sky high charges that often kill the company in the end EVEN when quality resources are in their licensed ground.
The small investor is often unaware of the finances of their invested share until suddenly with little warning they get suspended.
That is why I follow PAUL SCOTT small cap report, as he is a qualified accountant. And the strength/weakness of companies is shown in their accounts especially the ones that use creative accounting or dubious methods.
Paul can often pick these up...and although cannot prove the company to be dodgy..can and does warn the reader to avoid the share he is examining.....calling them a bargepole
lo!