Just be careful regarding groups9 Jun 2026 10:31
It's rare that I check in on PRD, but I noticed that a Telegram group has just been created.. Many will know that I ran a PRD Twitter group back in the day, and I later discovered that some members were connected to brokers and others who regularly took part in placings.
One incident in particular stands out. A few traders became very vocal because they hadn't been invited to participate in a placing. Then a new account appeared, heavily ramping the stock and encouraging people to buy more shares. The share price surged from around 3.5p to 18p, only for a placing to follow and the share price to fall back to around 5p. After looking through his Twitter history, I found he had done something very similar with Bidstack.
Over the years, this company has been ramped day in, day out. Brokers were suggesting a 35p share price target, while some rampers were talking about 100p within a year. What happened to Fox-Davies Capital, who were brought in to raise money? They certainly did a good job of raising £10 million after the share price had climbed to 18p, only for it to fall back to 11p.
These low-cap stocks are a very big gamble, and many novice investors get drawn in by promises of huge returns after listening to the rampers. One lesson I've learned is not to trust anyone completely—not even CEOs. At the end of the day, they are salespeople selling a vision that may never become reality.
Many investors in low-cap companies are deeply underwater. I still keep a few dogs in my portfolio as a reminder not to get too involved in these types of stocks. These days, I'm far happier sticking with companies that pay a decent dividend.
I genuinely hope your investment works out, but only invest what you can afford to lose.