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A positive lesson from the foul smelling Sunkar Resources

By Ben Turney | Wednesday 18 June 2014


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.


Writing about AIM there are inevitably some pieces I bitterly come to regret. I can make mistakes, misjudge situations and can sometimes pick poor stocks. We all do. Even though my piece in April, which suggested Sunkar Resources (SKR) could be a decent recovery play at 1.75p is profitable (by the thinnest of margins), yesterday’s “recommended” cash offer of 1.835p has left me feeling disgusted with my original call. What on earth was I thinking?! This was obviously a plague ridden stock and I want to apologise for having said anything even vaguely positive about it. There is so much I’d love to write about Sunkar, but would invite trouble. However, there is one extremely positive lesson to take away from this deathly smelling share. As soon as a dominant shareholder or obscure financial institution lends a sizeable amount of money to an AIM stock, the equity is toast! 


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