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renixus - Sat, 21 Dec 02 :

It's a consumer led stock, it could well be non-consumers selling this stock, i.e. large institutions / fund management companies. If the big sellers have more information than the small investor then that's fraud, especially since the share price has been falling for such a long time. The track record of these institution in small shares is not good, they make money when the overall market rises and lose money when the overall market falls, worst of all they sell into falling markets late in the day when liquidity is bad forcing even greater falls so they can exit their position. I have taken most of my money away from fund managers and now manage my own portfolios, I am personally better off for doing this (I compare my performance against theirs every now and then to confirm this) however I am still far from being the best investor and do lose sometimes like everybody else I imagine. What I am driving at is that it is quite possible for a small company share price to fall 75% and recover as if nothing had happened. The fall is the price paid by the large seller to exit their position and recover some value in the hope they can re-invest it in equities that are performing at that time. Now in a company with a tiny market cap of £20m, a sell of value £1m will easily force the price down another 50%. I am not worried about any of this, its a consumer led stock, I believe the consumers views are fairly represented on the BB, I am one myself and am prepared to have a little gamble on this one.


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