Further gains across aim shows further life in the small cap sector, this week we discuss some of the weeks points of interest in the usual laymans presentation.
The week was filled with IPO excitement as Twitter and Merlin both listed, Twitter near doubled with a 80% gain rewarding the $26 buck subscribers whilst Merlin's entry was a more modest 10% gain. Personally neither Royal Mail, Twitter or Merlin really excited me. The primary reason being the IPO valuations of past peers have been quite loose so coupled with the uncertainty that twitter presents or the likelihood of Royal mail employees crossing swords with its employer from possible industrial action reemerging, Yes they have come to an agreement on pay and conditions but this is no doubt due to the huge leap in faith by the markets with its valuation but I'm pretty sure that this is not the end but the beginning of the unions trying to test the company.
Back to the small cap we have seen significant gains in a number of small cap companies and although DLC audio jumped into action on the China New shout calling the stock down, I also covered Mariana Resource which is a very different review (More below).
To be clear my stand point never waivers when considering the gravity of risk in the aim market and those who let their hearts rule there heads statistically have a greater chance of the scorpion sting in the tail implosion wiping out gains leaving P.I's scratching their heads wondering what happened and where did the herd go? This is a regular emotion that the markets provide you with which is the contrast to complete depression or distraction which comes from being trapped in the wrong companies at the wrong level. We speak this week about the rationale and emotions private investors experience on DLC audio here (This is coming during the week)
APC Technology - The Rochester based company have certainly alerted the market of their presence as the shares are now exchanging hands at 60p from 30p as APC announced in september that they traded ahead of expectation along with a restructure completion via acquisition announced on 4th November.
GGP Greatland - Having covered the company at 0.365p on the shareprophets here GGP look set to hit the 0.80p TP with a possible move towards 1p. This is an initial guide and will be readdressed once achieved. technicals looked primed with a golden cross back last month coupled with a break over the 200Dsma at 0.43p which adds further to the bullish shift if the Solg/Marl money/herd and sentiment arrive it could well exceed my own expectation.
SAR Sareum - Announced a placing recently at 0.60p which has sent shock waves through the retail markets/Private Investors, this is to the bain of shareholders but a necessity when unable to return any revenues. The cash call is simply part of the course but I'll speak more this week. (Follow the shareprophets)
SOU Sound Oil - Friday the Sp failed to get over 8.3p which for me is the catalyst to its return to 10-12p look to find entry through weakness.
MTV Motive Tv - Offers little to no value but a stack of risk to anyone daft enough to entertain buying.
SCLP Scancell - Look to have fallen into the buyzone, scancell have secured funds with the intention of selling off a proportion of its science with truly encouraging signs coming back from its compounds.
FOG Falcon Oil - Having attended the Manchester proactive I'm yet to publish my findings but in brief the company under its old executive team sunk a fortune into Hungry which was a school boy error thus resulting in a collapse in the companies value as well as the shareholder sentiment to its portfolio, If Falcon secure a new big oil partnership then the stock will reverse and run north.
MARL Mariana - Yet another sensational run mirroring the Solg launch upwards, Both for me seem to be at fair value now. Some will look to call Marl down quickly however I would avoid the speculative opportunity to short marl currently as the potential to shoot a hole in the trade could come from a second coming seen in solg at 7p to 15p.
Please tune into the audio which will this week look at the psychology of private investors which is a further guide to forum mentality and placings, which are already up on the soundcloud page.
All the best
Featured on SP.com
Subscribe free for a daily share tip.
Featured on Ofst every day.
(These are but opinions derived from my own experiences and thoughts and do not adopted as statement of fact)