I've been in APG for 8.5 years now and historically it's same old, same old. The cycle is:
1. People buy in on the rumour of a deal. The greedy get sucked in, that's the nature of the shock-market.
2. The deal always seems to get delayed.
3. People sell off and/or wait and wait and wait whilst the SP 'floats', until
4. APG makes an announcement. And it's never as good as the pre-announcement rumours suggest!!
5. Now we get the justifications, APG's a small fish, in a large pool of sharks, there were problems with lawyers, APG hasn't got much cash but it's managing it wisely etc, etc. And all of these are true, I have no doubt, but I'm still waiting...
6. Rumours commence, back to stage 1 in the cycle !!!
...and round we go again...
There's no doubt about it - APG has got the technology that will see its future brighten considerably. But after you've been through 7-8 repetitions of the cycle you get sick of waiting .....
I think we're in stage 3 of the cycle now and I'm still waiting.....albeit not as patiently as in previous repetitions of the cycle. One of APG's strong points, in the past, has been its strong long-term shareholder support. And after 8.5 years I'm not about to abandon APG, but it has to be one of the most frustrating stocks on the market. I am frustrated about the never-ending delays, the inevitable possibility of another 1-2 repetions of the cycle and the recent 28 million shares available to employees in the Staff Share Purchase Plan, which water down my share holding.
When's it going to be my (the share holders) turn?
I have little confidence that there will be an announcement before the end of the month (based on history) and when it does come, why would I believe that it won't be another stage 4 in the cycle?
In my opinion anyone who buys APG has to be prepared to vigorously trade it between stages 1 and 2 in the cycle or sit on the side-lines and wait, and wait, and wait.
cheers Lekki
APG Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
