Good morning!
Fridays are usually fairly quiet, but exceptionally so today - there's literally nothing of interest to me on the RNS today, so I had a lie-in this morning after doing my usual initial review of the news on my iPad, in bed. Working from home is so efficient - no time wasted ironing clothes, taking suits to the dry cleaners, or the unpleasant & frustrating commute. I heartily recommend it.
I've noticed that a lot of small cap shares are slipping backwards at the moment, on profit-taking, especially things that have had big recent moves upwards. This is presenting some good buying opportunities, for people who missed the initial move upwards. I'm looking at topping up a few shareholdings that have done well recently, but slipped back in recent days.
Also I'm finding other buying opportunities, with mini panics on other illiquid small caps, as there aren't many buyers around with people being on holiday. So this can be a very profitable time of the year, to pick up small cap bargains which are irrationally oversold in thin trading, hence why I keep my eyes peeled throughout the summer - the more illiquid the market, and the fewer market participants, then the more pricing anomalies arise, to be taken advantage of.
If you've already done your detailed research, then you're primed and ready to pounce when the right (lower) price is presented to you by Mr Market! Although there's always the risk that a profit warning might be on the way, when a share plummets unexpectedly. Hence why I tend to prefer buying within a relatively short time after a trading update, which reduces the risk of something unexpected happening.
Satellite Solutions Worldwide (LON:SAT)
Share price: 4.26p (down 2.1% today)
No. shares: 308.1m
Market cap: £13.1m
Interim results to 31 May 2015 - this is a new company to me. It floated on AIM in Dec 2014, reversing into a shell called Cleeve Capital. The company describes itself as a, "global communications company specialising in rural, last-mile satellite broadband". This has already confused me! If it's satellite broadband, how can it be "last mile"? Surely it would be many miles, from earth to the satellite? If any reader can explain this, please do so in the comments below.
It's interesting to note that the founders of the cash shell, Rodger Sargent, and…
