What I find when City Equity phone me to punt a new issue share that they have bought in on a placement they seem to look for a quick 20/30% profit on the placement in this case they bought PTMN at 9p and sold at 12p the activity seems to generate some momentum. In view of the JSE price not performing in line with AIM I'm waiting for the drop back to 9/10p (where it is probably well worth a punt) but this asssumes a shrinkage in MM margin. I now have a history of 5 such share buying opportunities with City Equity 3 I bought two I declined. One that I bought has, after a year of 25% losses, realised a 32% gain (a yield of 20%)although it was realised 15 months longer than they expected. An other, after dropping a relatively acceptable 10% within 4 days, has me now sitting on a 32% gain hopefully going up. the third quickly lost 33% and is now sitting 26% down. I am hoping the pattern will continue so am holding the loss maker and now have a policy of waiting on any other pressure buy opportunities for the drop.
As far as Ptmn is specifically concerned I might be old fashioned but when dealing with assets in weaker currency areas I prefer to pay in hard currency at a discount rather than a premium which exists in this share at the moment as good a potential as it may have.
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