RE: Who cares2 Aug 2018 23:45
It is amusing really, the incredible detail we have put on buys and sells. As a small cap of course with low trading volumes individual trades have really seemed to effect the SP. All the LTH’s have seen this effect first hand and many of us with reasonable investment numbers have changed the flow and direction of the SP with buys and sells. However, over the last few weeks as the trading volume have increased and the SP starts to rise we will see less significance in the effect of the smaller buys and sells, especially if we move into the top end of the AIM 50. We could easily work into the top 10 within 12 to 18 months.
Momentum still has a huge effect but once the impact of what have been reasonable size trades 5k to 10k trades will become small fry and the £30k, £40k and £50k trades become the influencers. We will only be commenting on theses larger trades.
Even many LTH’s with substantial investments are unlikely to sell off in large bites. Why?
So many of their shares are in a SIPP accounts. So if BMN goes where we think it will and continues to grow and pay a dividend, those holders with more than a million will be drawing down the dividends and small lumps whilst living off the capital growth. The only time when they will need to sell significant figures are on the crystallisation dates. Date of retirement and 75th birthday based on current tax laws. They will pay 25% tax on anything over £1 million. You need to study the tax laws of the day and take advice of an accountant.
Those with large ISA holdings will again likely on draw off smaller sums at a time. Even for bigger purchases, you are better taking enough for a deposit and financing the rest as you will earn significantly more from capital growth on the investment than you pay in interest. That is why most wealthy people still use finance even though they have the cash.
This beautiful investment has potential to be in this area. Especially if BE really does take 10% of the global VRFB market. We could easily have a £5 to £10 billion market cap.
So before you sell all your holding to buy a supercar, yacht or airplane, be sensible take out what you need for the deposit find a good finance broker and keep your investment working for you. In the meantime, it will keep the SP going in the right direction. But enjoy the money you have made, but at the same keep it working for you. Once spent you will not get it back easily!
Hope this helps. Most financial advisers are quite so helpful as they want you to buy some policy or other.
Sorry I was getting board of the unhelpful children’s playground, I am bigger than you and my dads harder than your dad stuff. I expect better than this on this board. Oh sorry, I am actually moaning. I must be getting old. Smile folks ;-)
Good night all. I fancy an RNS tomorrow. ....... ........