Results came out today.
Company is in profit.
Over £800,000 cash on the books
Plans for very fast growth
Director buying
90% of shares owned by investors with over 3% holdings
Tiny Market Cap Just over a million pounds
Winning lots of awards.
Chairman had been looking for a good clean trading shell and after selling out his old company invested in AEO.
Since the year end investors have been back buying AIM stocks that got trashed in the downturn.Todays move upwards may be the start of a re rating.
As one can see on my other postings I am an upbeat kind of chap, looking foreward never backwards and take little note of accounts, charts and most of all, the city.
When a chairman of a company comes out and tells the world he thinks his stock is undervalued I take notice.
Others spend the next 24 hours looking for the rat.
If one wants to make millions one has to buy stocks that others have not yet bought into at the right price.
AEO has a tiny market value thus profits in a year or two could see this stock move up 10p a day.
I have done this with other stocks and as the market turns up most of the work gets done for you as greed takes over.
The trick is to buy at the start of a market rise and not at the top.
