“Calling someone who trades actively in the market an investor is like calling someone who repeatedly engages in one-night stands a romantic.” Warren Buffet
I beg to differ Mr Buffet, but I am a massive romantic. The last Tinder date I went on she asked me if the jeans she was wearing made her look fat. I told her no that would be her poor diet and lack of exercise that did that. Unsurprisingly we aren’t getting married.
On that fine start, the FTSE AIM All-Share has had another fine week, breaking past the 905 level to further highlight the junior market is performing strongly. Once again, there has been a long list of micro caps finishing the week a sizeable percentage to the good.
As a trader, this excites me immensely. November has been a stellar month so far thanks to the likes of Amur Minerals Corp (TICKER: AMC), Tissue Regenix Group plc (TICKER: TRX) and Xeros Tech Group (TICKER: XSG).
Let’s start with a quick re-cap on last week. Unsurprisingly, a couple of the biggest movers came crashing back down to earth. Inspirit Energy Holdings plc (TICKER: INSP), having soared 700% to 0.28p, on Monday announced a wonderfully discounted placing at 0.12p. Of course, the share price capitulated and closed the week at 0.11p. AFC Energy (TICKER: AFC) continued its surge from last week’s gain of 155%, topping out at 28.2p on Tuesday, before also announcing a discounted placing at 20p. Again, the share price capitulated and ended the week at 19p.
And that leads me on to an important message for all newbie Traders…never believe the hype, don’t be fooled into thinking these micro caps will surge 700% every week, and for the love of god practice good risk management. This is AIM, the wild west of the finance world, I have never known a micro-cap to spike 700%, 275%, 155% week-after-week. Take your profits and cut your losses early!
I have seen an old debate resurface on Twitter about micro caps and the unethical behaviour which continues to blight heavily discounted placings. @MylesMcNulty has tweeted his thoughts about lobbying the FCA to have companies suspend their shares before seeking financial support from institutional and private investors.
I am firmly in agreement with this, as I believe it will help to eradicate the market manipulation that surrounds these placings and ultimately leads to many private investors losing their hard-earned cash. I look forward to Myles updating us with his plan of action.
And on that note, below are some of this week’s movers and shakers.
Defenx plc +350%
Defenx PLC (TICKER: DFX) provides security solutions with a range of products for mobile devices and personal computers (PCs), protecting them against hackers and data loss.
This week its share price soared from a low of 0.50p to a peak of 2.25p, a huge 350% increase, despite it announcing on 11th November that it proposes to cancel its admission to AIM.
A hugely risky play, with solid support between 0.50-0.60p. A massive surge in volume on Wednesday, a breakout from the 8MA trend line on the Daily chart, provided an excellent opportunity to trade it and make a cracking return.
Xeros Technology Group plc +122%
Xeros Technology Group plc (TICKER: XSG) is engaged in the development and commercialisation of polymer bead systems with multiple potential commercial applications.
This week its share price flew up from a low of 0.85p to a high of 1.89p, a splendid 122% uplift, after it confirmed strong support for its recent placing and open offer.
I was alerted to this bounce play thanks to social media hype and a huge breakout in volume. The Daily chart showed strong support between 0.85p and 1p, and with little resistance above, it was a good risk/reward play.
Other possible trading opportunities from micro caps making decent moves this week were Plutus Powergen (TICKER: PPG) which soared 117% from a low of 0.082p to a high of 0.178p, Image Scan Holdings (TICKER: IGE) which rose 84% from a low of 1.90p to a high of 3.50p, Brady plc (TICKER: BRY) which climbed 77% from a low of 10.15p to a high of 18p, Kazera Global (TICKER: KZG) which jumped 66% from a low of 0.453p to a high of 0.75p and Rambler Metals (TICKER: RMM) which went up 51% from a low of 1.5p to a high of 2.26p.
The junior market is alive with money-making opportunities, I hope you are all taking advantage of this.
In a bit
I am a full-time trader who focuses on micro-caps, a freelance writer, and when I am not staring at the screens I am most likely climbing 3 mountains in 1 day for charity
Share Talk will make a donation to charity as a thank,s to Tosh for allowing us to publish his blog, no one received any payment for publication.
Tosh Lines has not been paid to produce this article by the company or companies mentioned above. A donation has instead been made on his behalf to charity.
This article is for educational purposes only. Information contained within this article does not constitute any form of advice or recommendation and is not intended to be relied upon by readers for investment decision-making purposes.
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