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STRATEGY UPDATE
Here is an example from our strategy on considering companies with impressive revenues and relatively low market valuations.
Each one of those companies is up by 60% or more with the high at 1900% and the average was about 500% (in only a few months time). Let’s compare that to the share price of a company that is popular among certain social media groups: LGC Cap Ltd (TSXV:LG). Our November issue had a case study on this company that you may read at your leisure. The share price recently fell from $1.02 to $0.43. This is in no way is a critique of the company but rather evidence of what may happen to Retail Investors who get their investment advice from the Twitterverse. Unlike the companies in our strategy, LG (at time of writing) has not published financials since June 2017; has no reported revenues; and the majority of its ventures that the social media characters reference are located on other continents. Again, this is not a criticism or an opinion of LG but rather what can happen to a share price as a result of a coordinated targeted promotion run by third parties with their own agendas. And yes, some investors would have done quite well following the, as the share price increased from the mid teens to $1.03 in less than four months. And much like this is not a critique of the company, it is also not a critique of the intentions of those that used social media to promote the company because they may have had the sincerest of intentions; however, it is the end result that affects Retail Investors.