When people look for reasons for why others are not doing something, like in the case as to why insto's aren't buying, then one should look at it from their point of view, not the point of view of a mum and dad shareholder.
Insto's don't buy just one stock, they buy say 100 stocks, when your money is invested through a super fund or similar, and if you don't have or want a say in as to where your funds are invested, they might invest 100 million for 500 different people, they don't put it all on one stock, it goes over the whole 100 stocks and you get the average return/loss out of that funds yearly profit or loss (they will have more options like you ask for more risk for a better return), that way if say 10 stocks tank or retract in price they don't loose the lot and indeed can still show reasonable profits, they would certainly allow for some losses.
IMO why would these insto's want to buy in now when it's not with their own money (I mean in a big way not like the CR) if they buy in at $1 when there's proof of revenue and AJX is considerably more derisked, then they only need to gain say 10% for the year and both them and their customers are happy (as most people don't understand the market and are oblivious to what goes on).
So if you look at it from an insto's point of view it only has to make say roughly 10% a year to have done a fairly good job, it also doesn't matter what the buy in price is, yes they would make more if they bought in earlier (I'm sure plenty have been burnt trying) but then they have extra risk, why bother, keep the profit margins at around 7-10% and most people would think that's great.
The big boys will only get involved properly IMO when they can see easy derisked money to be made.
You and I who use our own money have no such luxury, we need lower entry points to make the big bucks, them guys don't care as its someone else's hard earned cash.
Doing heaps of research and keeping ones finger on the pulse is very important in the market, a lot of people lose money because they sell for a loss because they don't understand how business cycles work and also don't understand how the market reacts to certain events (they follow others who also may not understand) such as the Greek debacle or the Chinese economic downturn, it's very hard to know what to believe as all the different experts tell you a different story, the only thing you can be certain of is how the business/company itself performs, and this is through constant research, company updates and proven indisputable revenue.
Cheers.
AJX Price at posting:
56.5¢ Sentiment: Buy Disclosure: Held
