|
So its
OK for value investors to buy a stock at its initial listing and see it fall
40%....or are they all getting in now at the discounted rate.....trading volumes
would suggest not.
G.
The recent fall in BDO from $0.25 to $0.15 bears no relation
to the performance of the company. The company now has $7 M in shareholders
funds and has been trading for only a few weeks since the IPO. There has been
no disclosure of trading performance since then nor would one expect any. The
only people unhappy are those Traders who stagged the issue expecting bigger
fools than themselves to clamour for the stock after listing. They were
wrong so tough luck. Perhaps BDO could now begin buying back their own shares
from their IPO subscribers at these bargain basement prices with all the new
booty sitting in their bank. How's that for having your cake and eating too!
Imagine the scene in 6 months time when BDO announce that profits have
substantially exceeded expectations forecast in the prospectus. Genuine
investors will the be laughing all the way to the bank. That in a nut shell is
the difference between Traders and Investors.
GPT
| 
See IRG research reports
