Open For Business
There is much talk of the UK being open for business post Brexit and post the pandemic. This may be the case despite golden boy Chancellor Rishi Sunak raising corporation tax to 25%. Indeed, given how Machiavellian the powers that be are these days, it is easy to take the view that any initiatives that are good for business are merely made out of a desperation to take in fresh tax revenues to pay for months of lockdown.
But perhaps one should be more kind. Stock market fans will have been cheered by Brent Hoberman’s recent article in the Financial Times, a curiously anti-business / anti-money publication, regarding listing reforms. That said, one wonders if any reforms would have prevented Mr Hoberman’s classic dotcom boom / bust poster child Lastminute.com.
A Dynamic Stock Market
Instead, it would appear we are looking at a those who can do, just get on with the job scenario in terms of making the stock market a dynamic place for investors and providing opportunity. As is often the case, it is not the establishment of any sector that tend to lead it forward, it is the mavericks, the talented and those who have passion (not just say they have).
The Perfect Investment Vehicle?
With this in mind we have Spac Quetzal Capital, which appears to be the perfect investment vehicle for 2021. This is said on three counts. The first is the remit: technology, eCommerce and Lifestyle. We have seen from companies like All Active (AAA), Dev Clever (DEV) and of course winners like Argo Blockchain (ARB) and Pires (PIRI) have been over the past year. In the post pandemic environment, the new economy has been pivotal to our lives. More importantly, it has become far more appreciated by investors especially in the previously natural resources obsessed London stock market.
Management, Management, Management
So far we are ticking two out of the three factors in the holy grail of what makes the ideal small cap opportunity. However, as most experiences investors are aware, in the small cap space, management is as important as location is to real estate. In terms of Management, Management, Management, we have John Taylor of Asimilar (ASLR) and Brandshield Systems (BRSD) as NED, providing a solid backbone to the company. The Non Executive Chairman Simon Grant-Rennick is another City veteran, with being a NED at the aforementioned All Active Asset Capital adding to a winning team. Grant-Rennick has decent “skin in the game” with 9.82% of Quetzal.
Follow The Money
The remit, and the management may all be very well, but something which we have seen really come into its own over the recent past has been the concept of “follow the money.” Director buying may have been and still is, important. However, what we have seen increasingly, is that there is an edge to be had in being mindful of what the smart money – professional investors, are buying currently.
TR1 announcements of disclosable holdings in companies have really come into their own, especially in the tech stock space in the past year. Indeed, we have seen this in the form of serial entrepreneur Chris Akers buying into companies for some years. What is key here his track record, where he clearly does not get involved for a quick turn, but a so called “multi-bagger” opportunity. Akers currently stands at 9.4%, with John “Pires” Mahtani on 5.2% at Quetzal.
It is already clear that many other professional investors who have been riding the tech tiger of the past year are eying up Quetzal, with its recent raise of £3m at 4p. The issue of placing warrants at 8p (versus 5p currently) means that there is the potential to raise a further £3m, meaning that the company is well “cashed up” and an ideal RTO vehicle. Current conditions remain highly favourable to Spacs on both sides of the Atlantic. It would appear that this Aquis listed company is very much open for business, and ready to seize its own initiatives, not waiting for sleepy regulators. The added bonus at Quetzal is that with the all star cast of shareholders and investor interest, the level of liquidity in the stock on Aquis would actually put many AIM stocks to shame.
(The opinions expressed here are those of the author, a columnist for Share Talk.)
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