is this opportunity real or too good to be true?

[#1]

Fressa, yes I do hold. It is my 'strangest' stock in my portfolio. I don't understand the business model, know very little about the company and bought it on a trader instinct late november last year. With these kinds of stocks I like to pick up holdings at the extreme ends of spreads - I got filled last year right after their pullback on that 35% move - and then I picked up more in April, when I placed a really cheeky buy order. I got partially filled - but it has taken my total profits to 75% now. And there in lies the beauty of long term holdings - you get to cash in on the big moves which you otherwise wouldn't pick up trading. Calgro on its own has just boosted my total portfolio by close to 10% with its recent moves.

[SimonPB]

they mostly build lost cost housing, under R500k and only build once they hace bank loan approved .. clients can also get government grants .. they actually build the entire township, schools, health and in CPT local gov has contracted them .. in short real houses that act as stepping stone homes between squatter camp/township and suburbia ..

[Rams]

Sounds like a nice place to retire

[fressa]

Thanks SimonPB. while i do like Calgro, i got pretty burnt with Seakay Holdings. Truth be told i knew very little about investing at the time (not that i know too much more now). Fortunately it when was i was first starting out so i didnt loose to much money, but a loss is a loss regardless of the amount. anyway, gonna keep a close eye on this. being an investor and not a trader, im happy for short term bad news and a significant price drop so that i can take a position.

[Rams]

if you buying on significant price drops,just make sure that the bad news is just noise and not a TELKOM moment...

[SimonPB]

sure, but this ain't Seakay ..

[#7]

Ja Fressa, your strategy is counter intuitive. Bad news for a small cap is not likely to translate into good news later. In any case, a blind trader could tell you that the 400 mark won't get reached again soon - and 380 represents massive support. So, as a trader, 380 represents a 25% loss on current levels. So if you think CGR's business model is a winner, then you should be banking on a lot more than 25% gain on a small cap. 50% minimum. My strategy to handle these types of stocks is as I mentioned earlier. Wait until the institutional hype has died down (usually happens in the middle of their earnings reports) and try to pick up stock while this share is inactive and the spreads widen. If you are patient, you will get a good deal. If it keeps running, because of some SENS or some analyst that forecasts R6 a share, well I am prepared to let the stock go - doesn't mean I won't trade it, but that is for a separate account. But I don't, under any circumstances, by a small cap (or any cap) off the publishing of 'bad news'. They have to be doing consistently well to warrant holding them.

[fressa]

Fair comments thanks for all the input.