Wednesday 20 January 2016

R4E a great short in current market conditions?

I've just posted this on the Trakm8 thread. For the benefit of non-Advfn BB users, I've reproduced it here:-

Hydrus post 983 - "Michael I'm sure you can shake it off having bought so low."

Yes, as you know I was buying these in 2011 when they were in the low teens. All well documented on my blog, and on this thread. Let's just say I'm used to the gyrations in Trakm8's stock price, the illiquidity and wide-spread.

As an aside, I love these markets, although please note that I don't use gearing in any shape or form. It's an opportunity to pick up shares in your favourite companies at knock-down prices. If you don't have any spare cash to invest then just sit it out (provided that you have long term confidence in your holdings).

Investor's are an incredibly irrational bunch. For example even Domino's Pizza shares fell by 4.4% today. Even if nuclear war broke out the Brits would still be ordering Domino's Pizzas. I don't hold by the way, maybe I should?

For a bit of light reading you may be interested to take a look at this blog:-

hTTp://michae1mouse.blogspot.co.uk/2015/12/when-is-loss-loss.html

All factual, although Ashtead shares have fallen to a mere £9.32 since writing.

Anyway enough of my off topic musings. For the record Trakm8 is a great little company with great prospects and an undemanding rating for the growth it's achieving, but don't take my word for it or anybody else's. Do your own research and if you can't (DYOR that is)then perhaps take time to consider if stock picking is your bag.

By the way (off topic again) if savvy investors fancy shorting a company then may I suggest researching R4E. Shareprophets were buyers at 4.5p (share price currently 1.4p) and have again bought at around the current share price.

Please DYOR, but, if you'll pardon my French, R4E is an absolute sack of sh*te. They've been recently forced to conduct a massively dilutive placing, capital reorganisation etc to try and clear some debt. Even after this the company still has large debts and a small market cap. R4E's assets are negligible. The company was once again loss making at the interims. Effectively R4E is worthless. It's business is reliant on theatre land in London and New York. If there is a recession then this is a business that will suffer more than most. Imagine a recession and a terror attack. A weak and vulnerable business that may not survive. I hold no position in R4E. ;)

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