Each to their own, but to a fundamental investor 12months is very much short term. I wouldn't invest in a stock with less than a 5yr horizon. I primarily invest in stocks at the small end of the market, which many people will tell you is risky. Provided you have a long enough horizon I don't think finding quality companies at this end of the market is that hard. What is hard is holding on through market gyrations, often completely disconnected from the reality of the stock you hold. I have held half a dozen stocks over the last few years that have decreased in value by 50% or more. Most of those are now multi baggers either based on an original investment or by buying dips as you suggest. Those that are still in the negative I see no reason to stress about based on their fundamentals.
As to their communication I agree it is not brilliant however this is also something common to small caps IMO. I would rather they devote our capital to growing our business rather than improving their communication by hiring unnecessary PR staff or outsourcing to expensive PR companies. I know there are arguments on both sides of the coin to that one though. At this stage I only care how effective they are at marketing our product to customers, which IMO is going very well, while marketing the company to big investors can wait until we have significant cash flow coming in.
Each to their own though, not criticising you just offering another view.
AJX Price at posting:
54.0¢ Sentiment: Buy Disclosure: Held
