By Malcolm Stacey | Thursday 29 June 2017
Disclosure: I own shares in one or more of the stocks mentioned. 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.
Hello Share Smatterers. If anyone ever berates you for risking your money on penny shares, you might want to tell them the following tale.
I last commended Creightons (CRL) at the start of this month. It’s nice to end it with a success story. As I write, the share is up by nearly 30% on the day. Compared with Creightons' share nadir, admittedly a few years ago now, we are looking at a more than 30-bagger. And that’s not a typo, either.
Creightons makes consumer goods, some of which I regard as pointless. But of course the great British public love to buy unnecessary stuff. And the full year preliminary trading results for Creighton reflect this happy trend. Here are the highlights.
Pretty good, don’t you think? And some extra good news is that - at last - the company has decided to pay a dividend. This is 0.23p per share. Ok, we’ve looked at the financials, now let’s consider a few of the operational highlights.
This pocket-sized company is also collecting prestigious awards from the ‘Beauty Press’. I first bought 17 years ago at about 10p a share following advice from my City friend Alan Green. Over many years rot set in and at one unhappy stage, I seem to recall the shares were around 1p. But then came slow revival. The share, as I write, is over 31p. So some lucky punters could be sitting on a more than 30-bagger.
That means they could have bought shares in 29 companies at the same time and, even if they all failed 100%, they would still be up on the exercise. Therefore, the Creightons story, which is far from complete, is a fine example of the wisdom of putting penny dreadfuls in your portfolio.
There’s free champers tonight in the Punter’s Return.
Never miss a story.
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments are turned off for this article.
Search ShareProphets |
Stock market news |
Recent Comments |