Ann: RC220 GLP Non-clinical Toxicology Program Successful, page-54

On occasion you are given an opportunity to buy a stock at prices well below the true market price as there is a seller (or sellers) liquidating a position irrespective of the fundamentals. I have had two such opportunities in the last 18 months.

The first was SPR (GCY at the time) which had such a bad reputation with many shareholders that the SP didn’t move from 10c even when the management changed and they found a massive high grade gold resource right next to the mill. The supply of 10c (or under) stock was limitless for months and months. It is 90c today.

The second was CU6 where a major shareholder GenesisCare went bankrupt and had to liquidate any assets it had. It sold off a huge block of CU6 (12% from memory) to a couple of brokers at 72c who then proceeded to feed this onto the market over the next 9 months locking the SP to 70-75c no matter what good news was released. It is $5.09 today.

In both cases I bought as much stock as I could justify and then bought some more just for good measure. The market was correct (huge demand), what was present were sellers who either didn’t care about the fundamentals or had some sort of irrational hatred of the stock because of the past. These opportunities are hard to find, but when you do find them they are as close to a magic money machine as you can find on the ASX.

If you think you have found one of these stocks let me know