Club Mulgoa

Wednesday, March 21, 2012

ASX and the smaller companies

I read this AM that the ASX is going to subsidize broker research into smaller companies to make them more appealing to investors who can't make the decisions themselves.

For me, it is good and bad news. Those that I own and get a good tick, will improve. Those with a bad report, will get a marked down. But worse, those I want to buy, will increase in price as those stocks will be "spotted" by those lazy investors. I much prefer them to be hidden behind a curtain, only be revealed when profit announcements or good drilling results are made.

However, sometimes, no matter how many good reports are publicized, the share price can remain in the sewers. I love buying the contents in the trough! Good fertilizers.

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