UK 18:48 Friday, 23 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
I am still recovering from lunch with Paul Scott yesterday. It was great fun but I have no idea how I made it back to Bristol and now I want to go to bed again. In this podcast I discuss the idea of investing in bad companies at the right time. I look at Rob Terry's antics on Friday at Daniel Stewart (DAN) and Imaginatik (IMTK) and discuss flip flop tipping Red Rock Resources (RRR).
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Comments
wildrides
Seems to me if your looking for value in micro cap penny fraction shares you need to have at least one or two strengths on the old swot analysis for the risk to be worthwhile . The existence of a so called asset may not be enough . This is where the “deep value” investing concept promoted by the “old Buffer” and others like Amanda Van Goddess and friends falls down . The balance sheet “deep value” concept is NOT at all transferable to the resource sector …….. full stop ( research the BHR debarcle) . A resource sector asset in the ground is just some sort of shite in the ground . It only really has value when its come out of the ground ie has been mined . Unless its gold and over 2 million oz located in one place , mineable , with permissions , power , transport links , stable politics blah blah blah . Other than that its worth feck all unless its economic to mine . At current prices very little is economic to mine in the cold light of day . It will take a couple of years of sustained higher prices to really change that market view . So where is the deep value ? These business largely have no cash , a pile of shite in the ground thats un economic to get out at current prices , infrastructure that is mine and location specific in the middle of no where , no marketable brand , Land thats worth nothing in the middle of no where , redundant obsolete plant (mothballed) or no mining plant in place what so ever , probably in foreign fields , with a government that will rape you of any useful assets if it needs to (OXUS) . It just aint the same as the “Old Buffer” buying a widget maker in the US mid west with a site thats prime brownfield retail on the edge of a large town , sitting on a pile of cash and a large inventory of widget making materials ,ready to sell widgets, customer base , branding , blah blah. Now that is deep value investing . That pile of steaming shite RRR is just not polishable at present . Its still steaming , warm and soft . Leave it alone and wait . Its just not deep value . The trouble with fraction microcaps is that they can much more readily halve in price than they can double in price and the spread alone will wipe you out over any multiple losing trade runs . Two recent classic piles of shite :- FTE and Nostril Terror . Look at the charts and RNS of these two outfits and see if you could have called the bottom ? I buggered if I could have accurately called bottom on either and we probably still are not there yet …….. Deep value they aint . Share price direction is everything in micro cap resource stocks ……..everything else is just plain bollocks . Wait until it moves sustainably …………. just wait ………… and wait ……… and wait and wait and then buy when it does and ride the wave until it breaks then JUMP, JUMP and JUMP quick. Anyway else and you will lose your shirt, and faster than you ever thought could ever be possible . Give me an example of this technique I hear you say ? Recent from this year I hear you say ? Okay two prime examples I made a good wedge on this year that displayed the sustainable movement upwards …….entry …..ride the wave ………. jump off strategy . WRES and LGO look at the current years charts carefully ………… and see the sustainable move upwards over time ( not couple of day spike ) the long ride period ( compared to a spike) and obvious jump off point clearly sign posted by specific RNS news . Now look at the companies and try and find DEEP VALUE in them . Actually dont bother cos you wont find any at all . There is some specific real value in places ……… but not deep secure value , not “Buffer” deep value , not Tom and Steve Nifty Fifty deep value , Not Scotty small cap deep value , not Malcolm Guru deep value . That my friends , is many years away for resources stocks . Until then you must ride the waves in resources ,ie take the Wildrides. You will make money ONLY if you manage the risk . That means riding winners three times higher than you let your losers fall before selling ( in % terms) .
Take care ………….. its a jungle out there.
warun boofit
I agree with Wildrides considered opinion but also add the done to death Mark Twain quote defining a gold mine as a hole in the ground with a liar on top. This definition applies to all holes in the ground or under the sea not just gold mines, if you are a resource CEO then why not massively exaggerate whats in your hole, no one will ever know until its too late and there will be no penalty to pay and if you are a really sharp cookie you can spin it out for years and years with never ending placings. The punters are as much to blame for being gullible, celebrity status almost god like CEOs are worshipped, why dont we see through these twats from the outset for what they are.?Actually I have answered my own question the whole thing is just a game there is no right and wrong you just need to know how to play the game, I dont like country but Kenny Rodgers gamblers song fits the bill.
AB
“Tom Einnifrith bearcast”……hey Tom, changed your name to one more Irish-sounding to show your rugby allegiances, I see!