Good morning! I have to be fairly quick this morning, as dashing off to see an interesting Listed company later this morning, and it's quite a long drive to get there for an 11am meeting. I really enjoy meeting company management, especially if it's at their premises, to get a feel for what the business looks like & how it operates. However, it's so difficult when they are scheduled for the mornings!

We were also hoping to drop in on another Listed micro cap in the same area, but it was too short notice to see them, which was a pity, as I won't be in that area again in the foreseeable future. I feel that companies should welcome investors popping in to see them - it's not a question of rolling out the red carpet & having all the Directors present, but surely they have middle management who can just take interested people on a quick guided tour? Saying no just creates a negative impression, and makes you wonder if things are shambolic that they only want visitors when they've had time to tidy up?!.

 

 

 

Blinkx (LON:BLNX)

It will be interesting to see how Blinkx (LON:BLNX) pans out today, after yesterday's blistering attack on a Blog apparently written by a Harvard Professor who is studying online advertising. His allegations triggered a meltdown in the share price, wiping an astonishing 32% off the share price (more intra-day), eradicating about £223m from its market cap, bringing it down to £474m.

My only observation is that this episode surely demonstrates that tech valuations are too high, and that investors don't really understand the detail of the business models. Hence investors are really being reckless in chasing up valuations so high, when they don't really know how a company operates or makes its profits, and whether that is sustainable or not.

This will surely embolden bear raiders, and I suspect there will be more exposes of this kind, triggering waves of panic selling. The trouble also is that so many of these tech stocks have legions of private investors who have punted on the share price using spread bets. That has been lucrative on the way up, but is ruinous on the way down, as the SB companies now just close people out…

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