Small Cap Value Report (24 Jul 2015) - SAL, BOOM, GDWN, KBC

I read SPARK Ventures (LON:SPK) are acquiring 2m SAL shares, not sure if that had any effect on the share price?

Tungsten (LON:TUNG) seem to be on the way up again, up over 20p recently.

In reply to post #103520

i think Spark are only acquiring them because they are effectively merging with Gresham Hall, so this should have no impact. (Typing without glasses! Apologies.).

In reply to post #103522

Tungsten (LON:TUNG) shares are just a gambling chip now. Nobody really knows what it's worth - it's impossible to value in my view.

P.

Hi Paul

I find the issue of insider trading depressing. In many instances it is so obvious what is going on - not sure why the FCA can't spot this and take punitive sanctions against those who engage in the practice. It really needs to be sorted out as it is unfair. I have been caught out on the wrong side of it a few times with the share price dropping 10-20% in the days leading up to an announcement and I am sure I one among many.

Ric

Not sure what is happening at Xaar (LON:XAR) share price has just shot up 6%. Insider trading? Can't see any news.

Agree about insider dealing.
I think the problem is PROVING criminal activity. Just look at the problems trying to convict anyone who has rigged libor, and with libor there is a lot incriminating evidence on bloomberg chat msg system that has appeared in the newspapers. Tom Hayes actually originally pleaded guilty.
But the burden of proof to actually send people to prison is a different matter, particularly when they have very expensive lawyers.

HI Paul

Top slicing query;

you have talked a few times recently about top slicing your holdings where they have been doing well and have reached full value.

What percentage do you sell when you do top slice? `20%, 30%, 50%, more?

Would be interested to know

Regards, and thanks

In reply to post #103534

Well for garden variety cases, it's not too hard to catch insider trades: the authorities can get the beneficiaries for each suspicious trade and then check whether there's some obvious link with company or adviser principals. The SEC does it and catches some people regularly. It is often small fish, but a regular flow of such cases probably has some welcome deterrent effect.

On the other side of the medal, it's tempting for conspirationists to attribute with hindsight any material move before a news release to insider trading. Makes a nice story, regardless of truth. I'm sure some of these moves are just unrelated noise (e.g. fat finger or clunky sellers/buyers) which just happens to be before some news.

Also not all insider trading involves "insiders", there's a number of people involved in a news release, and these days they use computers. Most accountant/ management/ adviser types are not generally technically literate enough to get computer security right (it's hard). For a black hat hacker, it looks like an easy business to be in. I bet executing the trade without leaving obvious traces is harder than getting to inside information.

The rise in SAL could be because it was tipped in a thursday afternoon email.

let's see what the news will be on SAL in the next couple of days. if you have a reasonable suspicion of market abuse you can contact the FCA market abuse team: http://www.fca.org.uk/firms/markets/market-abuse
market.abuse@fca.org.uk
Market Abuse Helpline: Telephone 020 7066 4900

With a stock as thinly traded as SAL with everyone waiting on news I think it is just as likely a few buys shifted the price then people believe there is leak and jumped in shifting it more.I bought £1.5k of stock this morning at 73p when the mid price was 71.5p. Another buy straight after me shifted it more. I hope I am wrong though and there is news early next week.

Thanks Paul for all of hard work doing these reports.

Cheers

Peter

Thanks for your reports. Keep it up! You are my hero.