Research29 Dec 2017 11:23
Research
I believe that less than 5% of Posters do research. It could be as low as 1% but what I do know is that it is low, very low.
On MDZ we have a Mr H who has built a position of 20% which has been achieved at less than 0.14p and we have had no communication from the BOD if Mr H has made contact. I at first thought he was going for a seat on BOD or possibly a full takeover. I am now not so sure of a full takeover. If you look at the significant shareholders then they have along with BOD 13.82%. There could be other significant shareholders under the disclosure threshold who would, if they were of a similar mind prevent a full takeover.
So why is Mr H here? Does he share the same belief with me that MDZ is grossly undervalued? That our margins are significant? That our website is the best of any AIM company?
What I am going to do over the coming weeks and months is research all 1,200 AIM companies. I have already compiled a list and I can research similar media companies or sectors or brokers or advisors. I will be looking for Mr H as a significant shareholder on any other AIM company and in the process I hope to locate two or three companies that I would want to invest in.
What I will be looking for are undervalued companies that have potential to return substantial capital growth. If I am fortunate and do find one or two companies I will not achieve my capital growth without the herd arriving. This is where greed comes into play. The herd, by not doing any research just follow and if they are honest that is how they trade. You know when the herd has arrived when they buy and sell £40 of shares in a day. Then you get the rampers (we are all rampers and if we are not then why are we posting?) Rampers ramp to let pi’s know that we are there and that everyone should be there also. Next you will get the derampers, this is the ones who have made a few bob and want you to sell so they can get back in. You often find that their new account was only set-up the week before and that was when they first arrived.
My tactic to avoid being caught out on a spike is to set upper limits to sell, if the share price spikes then you achieve a profit. You may have to only trade the normal market size when setting upper limits as MM can decline your order if it is larger. Most experienced investors know the above but every day someone new arrives and has to learn by their mistakes.
I wish all Posters and happy, healthy and hopefully profitable 2018.
DYOR
RKB
Hello Maidit308 fully agree with your thoughts