RE: Market cap is key14 Dec 2024 08:27
Having taken the plunge in investing in the stock market I now reflect on the big mistakes I made over the last year.
Lessons I learnt after making a few disastrous investments, ..even though I was cautious and did a fair bit of research on the companies I invested in.. Look at MCap and look at shares issued.
The company may well have some fantastic people working their socks off and be at the point of a financial breakthrough,..but it counts for nowt if the market is not confident on the financials.
I give an example,..DGInnovate,..Ex Tesla guys who have a proven record on how to fast track a business and level it up pretty damn quickly ,I was impressed with the product and still believe it will eventually make it's investors money. But the problem for now is low volume of Shares being snapped up, (I think they had 15 trades yesterday) and 12billion shares issued, several amazing pieces of news, a J.V., a tier one manufacturer partnership ,even a visit to No10 Downing Street has hardly moved the SP Northwards.
The market is nervous because of what might be around the corner, CLN's and how they fund to keep the lights on as they look towards production of their fantastic product.
I can think of at least a dozen other companies that face a similar dilemma, years of research and dilution and low volume of share purchasing.
But now after my first year of investing I have found two companies where I feel my money will bring very good returns because the fundamentals are solid,low MCap and shares in Issue are not a problem because there is momentum in what those companies are achieving.
I sense a feelgood factor is growing within GST , confidence in the BOD is high , several bowstrings are being added to what is already a revenue generating business,..nothing more needs to be said except good luck to those who kept the faith and had the patience to see through the bad times,...you will be rewarded handsomely!
This is not advice , just my take on
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