tag:blogger.com,1999:blog-6443862031662825789.post7083957066401411450..comments2023-10-09T18:02:34.790+01:00Comments on Paul Scott's UK Small Caps: Fri 17 Aug - recap, SAFPaul Scotthttp://www.blogger.com/profile/13081674666652796786noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6443862031662825789.post-21598439781433983342020-02-06T06:09:12.248+00:002020-02-06T06:09:12.248+00:00I wanted to thank you for this great read!! I defi...I wanted to thank you for this great read!! I definitely enjoying every little bit of it I have you bookmarked to check out new stuff you post. <a href="http://www.boatparadise.com/" rel="nofollow">BoatParadise</a><br />workinghttps://www.blogger.com/profile/06040979762412043113noreply@blogger.comtag:blogger.com,1999:blog-6443862031662825789.post-77002630708236394822012-08-19T15:14:48.724+01:002012-08-19T15:14:48.724+01:00Hi David,
Glad you like my Blog! I enjoy writing ...Hi David,<br /><br />Glad you like my Blog! I enjoy writing it, and am getting 500-1,000 hits per day, so people seem to like reading it too.<br /><br />To answer your question, I don't tend to invest in sub-10m mkt cap companies for these reasons;<br /><br />1. Inadequate liquidity in the shares, hence too difficult (and expensive) to buy or sell in any meaningful size.<br /><br />2. Risk of de-listing is now very high for micro-caps, since the cost of being listed is not justifiable given the long bear market in small caps in recent years. De-listing instantly wipes out c.50% of your investment, and could make you a forced seller. I don't see the point in taking this risk when I don't have to.<br /><br />3. Dividends are usually scarce in sub-10m mkt cap companies, so all too often those companies are really run for the benefit of their Directors & staff. I don't want to fund their lifestyles!<br /><br />4. On a conceptual level, I don't believe tiny companies should be Listed at all. A listing should really only happen once any company has matured & become profitable.<br /><br />5. Leading on from that, blue sky investments are overwhelmingly poor investments - over-hyped, and then under-delivering in the vast majority of cases I have seen over the years. The occasional multi-bagger occurs, but in truth it's more luck than judgment in finding these.<br /><br />6. I only have a limited amount of time, hence cannot personally cover the entire market, so have to narrow it down to a manageable number of companies.<br /><br />Cheers, Paul.Paul Scotthttps://www.blogger.com/profile/13081674666652796786noreply@blogger.comtag:blogger.com,1999:blog-6443862031662825789.post-1311023582504839892012-08-17T19:42:10.919+01:002012-08-17T19:42:10.919+01:00Hi Paul
Only just discovered your blog which is a...Hi Paul<br /><br />Only just discovered your blog which is awesome.<br /><br />I have one questions: what are your reasons for not investing in sub £10 million market cap companies?<br /><br />Cheers<br /><br />DavidDavidhttps://www.blogger.com/profile/06729451745335675061noreply@blogger.com