Dangerous Specs9 Mar 2021 15:36
Many companies are having their sp hit, due to monies being withdrawn and invested into the latest craze that are Specs.
Reading an article today, it appears that the ratio of IPO's via Spec companies to none Spec companies are 3 to 1 over the last 6 months.
The Spec bubble is being talked about more and more as a possibility of becoming one of the most damaging investments ever.
From figures, billions of pounds/dollars are being invested in these companies, which are by definition, shell companies that are used as a very cheap option to enable companies to 'float' at a cheap rate.
From the research many of these companies touted by the Specs, are very over valued, and investors in Specs have no say as to which companies the Spec takes over and into the IPO, but because these Specs are pushed by so called celebs, and those who have millions of media followers, many investors blindly follow.
All this money has to come from somewhere and it is believed that quite a large percentage is coming out of the more main channels, so that the next 'get rich quick' scheme can be financed.
Well before the bubble busts, monies will start being withdrawn and will return to the more sensibly looked at markets, and that must surely include the AIM, as compared to an investment in Specs, its as save as houses (albeit with a slightly wonky roof).