"The SPP is a bit of a sweet spot for me and 30K is a nice...

"The SPP is a bit of a sweet spot for me and 30K is a nice largish position. I think this is one of two big advantages smaller retail investors have, the second being fewer liquidity constraints in small companies. Just wondering if there is a good rationale for a sub holding of small amounts in 20-30 good companies, on the off chance of using a raising to build a decent position in one or two."

Mmmmmm.

I know of one or two people who do that sort of thing (and I assume they are successful at it), but at the risk of being a bit of a buzzkill, I'm not sure that's real investing.

Because, to my way of thinking, if I am of the view that a company is under-funded (or sub-optimally funded) then that's probably not the kind of company I want to own to begin with.

I've seen too many companies - even good ones - come unstuck because they are dependent on the kindness of strangers in capital markets.

Besides, you might take modest stakes in 25 companies that you think will be raising capital, but only a few of them actually end up doing so on the basis that is profitable for your tactical arbitrage, but my experience is that most companies try to muddle through and trade their way our of their liquidity constraints, only to end up doing so at levels lower than where it would have been attractive to byy meaningful stakes on the basis of first-principles, fundamental valuation, anyway.

Maybe I'm just a bit too lazy [*] to sniff out technical arbitrages, but my sense is that the effort-to-reward ratio is higher than just looking for stocks that are fundamentally undervalued (and well-capitalised!) and simply buying those. Especially now, after the vomiting of the market in recent weeks has restored a semblance of valuation appeal in some stocks.

[*] And too afraid of debt, as well.
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