Atlas Pearls and Findi are 2 examples why real recovery stories are so interesting. These 2 companies (in very different sectors) had a very difficult past, the market was probably expecting them to go bankrupt. Despite that, they found ways to survive via loan from their main shareholders and/or recapitalisation. And have shown a significant recovery for their operating performing during the last 2 years. But the market ignored it for some time (uncertain of the recovery), before refocusing on these companies and see their major potential of revaluation.
Of course, one reason is that these companies are micro caps and so are totally of the radar of most of the investors who can't follow everything, in particular with companies which used to be considered as near bankruptcy.
My point is simply that we don't have to take the risk of recovery for this kind of stock. It is probably better to wait that the company has already shown clear signs of recoveries (for 1 or 2 years) and it is still not too late to invest, while largely limiting our risk.
YTD performance for Atlas Pearls and Findi respectively : +150 % and + 102 %.
