£18.95. Friday's closing price of shares in ASOS, the online retailer. It's an incredible story, and is indicative of why I love investing in mico-caps. Of course ASOS is no longer a micro-cap, but it certainly was in the not too distant past.
ASOS first came to my attention when the company released a trading statement indicating that trading was significantly ahead of expectations. At the time the share price was 15p, and I vividly remember toying with the idea of investing £5000. However, for whatever reasons I didn't. If I had bought and held them then that £5000 investment would now be worth £631,667. Oh well, if my Aunt was my Uncle!
The point is that investing in micro-caps can be risky, but the rewards can be phenomenal.
ASOS is now trading on a very heady p/e ratio, and I certainly wouldn't entertain buying them now, but when you catch these companies as micro-caps it can be an exciting and hugely rewarding journey.
Whilst I am yet to buy and hold a company that manages to multiply my investment 126 fold, I am lucky enough to have picked a few "multibaggers", and I hope to pick a few more in the future.
Investing in micro-caps is great fun (as long as you do your research), and it can be magnificent.
I intend to use this blog to post my general thoughts about the market and shares that I own, don't own or currently interest me, alongside my regular posts on the ADVFN bulletin boards. All of the links will be pulled together on my twitter account.
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