Massive spread and no sales orders

[Bouwer]

Anybody care to comment? Only one sell at 29 and buys at around 11.. Someone is expecting some major moves on this.. not sure if it is up or down though...

[THRESHOLD]

Highly illiquid and the volumes shown are tiny - so - it all means nothing. The moment there are some buyers there will be sellers - or vice versa. If there is a shock announcement... then she'll move.

[Bouwer]

Idea on direction?

[THRESHOLD]

No Idea. Seemed a lot of company for 10c a while ago - so I bought a chunk. Now I own 3% of the company - so it had better move up!

[DaMerlin]

Thresh you seem to own 3% of almost every worthwhile smallcap out there ;)

[THRESHOLD]

Nope - usually 2% - and only of interesting penny stock companies - so very few companies really. The upside potential is enormous - the downside only 100%. Buy a spread of interesting prospects and you can do very well. One caveat - you need lots and lots of patience.

[THRESHOLD]

If this is about the truth of the claim - I can offer you most of the position as this chunk is held in my name.

[DaMerlin]

no no, I know its true, I always value your input concerning small caps :)

[DaMerlin]

Would you mind sharing which small caps you are currently holding? I have MOR (bought at 25c), FGL (bought at 11c), RSG (bought recently at 181c), SOH(85c). Sold out my positions in KEH (bought 220c, sold at average of 295c), WSL (bought 140c, sold average of 200c), and BSS (sold at 55c) in the last month.

[THRESHOLD]

Unfortunately not. Of the stocks you listed - only FGL - and I am out of them (too early I might add.)

[Bouwer]

@Thresh, what would be your target for this share? I think it may be a good little share top keep for a while, depending on next results. The reduction in cash is a bit of a red light together with the overdraft and creditors for such a small company.

[THRESHOLD]

I don't really have a target - it looks cheap - I'll hold it until it no longer seems cheap - or it goes insolvent. If circumstances change - I'll start offloading. That might prove a little tough though.

[Bouwer]

Well with a 3% holding wouldn't you be entitled to certain privileged info? :-)

[THRESHOLD]

Nope! Just a common old bog standard shareholder like all the rest. I could make myself a nuisance at AGM's etc. - but so could anyone with even a single share. Sometimes - I have had 3rd parties approach me to buy me out "off-market" - they invariably turn out to be agents for the directors (/owners.) They insist on non-disclosure agreements... My attitude is that they can bid on the market and if they are so keen to buy I would rather not sell. PS! 5% is the disclosure threshold for the JSE - earns you a mention in the financials - but still no better than the rest.

[partridge]

Every now and then 32-1 outsiders come in. My great great aunt's horse won the Grand National on its 4th attempt. Stuff does happen. Just like Brazil lose at home for the first since 1975 and by the largest margin in living memory. What does this company actually do for a buck that makes for an investment case in it and is it a well run business - no evidence as to the latter - given the share price decline. Seems to have been only sporadically traded for a bout 12months plus. A director sold in 2013 - looks like he left for good- don't see his name on the board. Is this a company nobody really wants - as in once you are in you are unlikely to be able to sell?

[partridge]

I phoned an acquaintance who has business dealings with PSV. I am not jumping up and down with excitement.

[THRESHOLD]

Interesting space - dollar price referenced income stream. Paid 10x more for the underlying businesses than they are now worth (for what that's worth.) Specialised engineered products and wholesale of specialised parts. Was a fund darling at one point (fickle mob that.) The director sold out to Westbrooke Capital Special Opportunities Fund - the same crowd that bought into CNL just before it went private (yes - I owned 2% of that thing from 50c) Frankly there are only a few interesting microcaps and I am happy to put some money into each. If some fail - I should still make a packet over time. (It's very difficult to type with my fingers crossed.)

[partridge]

people are going to avoid you if you don't uncross them!

[THRESHOLD]

I'm a happy hermit though... said the recluse.

[Bouwer]

Well speaking of crossing fingers, any one holding FSE? It really does look unattractive. No earnings, funding is a bit of a problem, directors seem a bit clueless at times. BUT if they do get a contract (Eskom) and they most probably will (Dr Phosa - WCC), it will likely rocket out of there.. Just appointed ARDBEL to set up infrastructure. So the wheels are turning, just hoping they don't come off...