Hi Wallee, I'm by no means a wealthy sophisticated investor. In fact I'm just a doctor who's into finance. I'm just trying to point out that there are always opportunities if you have the right frame of mind.
Companies do their capital raising through sophisticated investors and institutions because there is certainty in getting the money they need. If you look at recent share purchase plans and rights issues they have all had huge shortfalls. For example CRC (placement 12c now below 10c), SRQ (placement 62c now 40c).. The list goes on. So in fact you can buy on market at below the cost of the placement price in many cases.
I'm not saying the system is fair. In fact the opposite. The entire western world has now become a something for nothing society run by crony capitalists. Many people have decided to stay out of the markets due to the manipulation. Retail investors in the US have been withdrawing money from the mutual funds for many many months.
Do I think company ceo's are overpaid and lining their own pockets. Of course I do. But what can you do about it. In many cases the minority shareholders just don't have the power to vote down the compensations. But it works both ways. Companies that screw their shareholders will eventually go bankrupt and the directors will lose their fat salaries.
You gotta remember the world goes in cycles. It was grossly immoral that the bankers got bailed out with tax payers money during the GFC. They should have all gone bankrupt. But it is what it is. Although now there is a huge backlash and when the next crisis comes those bankers will lose everything. Even if they don't they will get taxed like crazy. The problem for them in a democratic society is that their vote is worth the same as everyone else's. So you'll see more scenarios like France where Hollande won cause he said he's going to tax the rich 75%. The top marginal tax rate in the US in 1961 was 91%!
All I'm saying is that sitting there feeling sorry for yourself is not going to make you money. It is a game and you can't change the rules. But all the manipulation has led to mispricing in many asset classes and that's what you can take advantage of and make some money.
AGS Price at posting:
18.0¢ Sentiment: LT Buy Disclosure: Held
