Just when you thought things couldn’t get any worse, The Times yesterday reported that CEOs and C-suite directors are currently leaving their positions at a record rate.
Apart from being a clay pigeon for every hustler, service provider, regulator, and, of course, shareholder, there is always a crisis of expectation in terms of what can be achieved—not only in the current horrific economic environment but also historically, given the way that the CEO is supposed to be some kind of god-like figure, a mission impossible for many.
The article in The Times was, of course, focusing on mid-cap to higher market cap companies, where CEOs at least have some wiggle room in terms of resources and finances. They also tend to be better qualified, more experienced, and have better people serving them. The main horror, though, comes in the small-cap market. For instance, I’ve often complained that many CEOs choose PR companies that are either run by cowboys or used car salesmen. The simple explanation for this is that, very often, that is what the CEOs themselves are. They are just choosing to use people like themselves, with an inevitably poor result.
Box Tick PR
As I have also said previously, PR/IR falls into the category of an area that most CEOs do not have a clue about and therefore choose to go with those who are the most convincing—whether or not they actually provide a service. This leads to a box-ticking mentality, where companies just do what they see their peers doing, whether or not there is any value in it at all. “No reach” webinars, amateur-hour interviews, TikTok style videos but with boring content, and copy-paste articles are not going to help the UK stock market become the NYSE. But charge a small cap company for a meaningless or useless cheap embedded retainer on a service you have convinced them works, and bob’s your uncle. Otherwise go for the high pressure sales, or online trolling to get noticed (what a winner being mentioned on a platform private investors hate / or have lost money on), and you have another way of preying on cash strapped companies. Given that this is increasingly the case, it is understandable that many CEOs these days have decided to go for something rather easier, such as climbing the north face of the Eiger, solving Gaza, or taking part in a manned mission to Mars.
Bulletin Board Heroes
Although AIM remains at 14-year lows and continues to haemorrhage companies—paying through the nose to stay listed, watching no one trade their shares, and being unable to raise money unless at a horrific discount—on an individual basis, the start of 2025 has actually not been that bad. In fact, rather than saying on an individual basis, it would be more accurate to suggest that there have been special situations. Thankfully, my friends at ShareTalk have noticed that my calls in Bulletin Board Heroes video have, in general, caught most of the best risers. This is, of course, the purpose of the exercise and something that no one else does on such a hands-on basis, day in and day out, trying to help small-cap punters beat the market—at least now and again. One imagines that the general lack of appreciation is that the “competition” would look pale in comparison if it acknowledge how helpful the video can be.
For instance, this week Enteq Upstream (NTQ), Orosur (OMI), Georgina (GEX), Gfinity (GFIN), Xeros (XSG), Eurasia (EUA), Microsalt (SALT) all rose, or have risen, after being highlighted in the charting video. Of course, after 25 years of delivering this coverage, I am fully aware that even if I called every single stock correctly on the London Stock Exchange, there would be no fanfare or acknowledgement. This is because the stock market and all that is in it remain a closed shop/mafia. If you’re not part of this particular club, you will not get an invite to the gala receptions, however good you are and however much DEI is in the system. Apparently, even being listed and paying one’s makes no difference. Hence, perhaps, the stock market and CEO exodus.
Stocks Rising on No News
I do tend to include the best performers of the week that achieved this notoriety without having any fresh news. Of the charting winners above, Eurasia, Georgina, and Upland were the winners on price action alone. Indeed, if I had to pick one of them, it would be Upland, if only on the basis that both on Thursday and Friday, the shares opened at the low of the day and closed at the high. This tends to mean that there is concerted buying in a stock and that either the sellers have been caught out, or the buying is so strong as to absorb any efforts of the bears. In addition, one can say that Upland is one of the more speculative stocks and can be leaky; therefore, two days of buying suggest a situation of “no smoke without fire.”
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
