Ann: Trading Halt, page-33

mcgaffen,

""It is my belief that a small cap is NOT an investment at all. Most sophisticated traders will also believe this. ""

It's an interesting statement, one that we obviously differ on.

I can give you an example of a small cap that announced on the 24th of Feb that a Mr Beament would subscribe for 9 million dollars of stock at 8c per share. The company had a market cap of around 35 million at the time. A few months later it now boasts a market cap of of around 240 million dollars. The company I am referring to is VXR.
To suggest that Mr Beament did not view this as an investment opportunity is just being totally unrealistic. Thats exactly how he viewed this company when he decided to make a very sizeable investment. He obviously believed it was undervalued and put his money where his mouth is. Turns out he made a very good choice. He has already made more than ten times his money, because he was also given a one for two attaching option.
His belief or hope as you refer to has proved to be very worthwhile financially. Do you think he viewed this as not being an investment ?? I would not have thought so.

There have been heaps of examples where sophisticated investors have made huge investments in stocks for various reasons . Sometimes you will find the company use the term Cornerstone Investor. I am sure you are familiar with this phrase.
These Cornerstone Investors are generally not there for the quick trade. They are there for the longer term, to hopefully make plenty of money in a company that they view as being undervalued with plenty of growth potential. One such investor Tolga Kumova has done very well in recent times by
investing in small cap stocks . But there are plenty of others who have done very nicely . I only mention his name because most investors would know of him.

Cheers.