Morning all! Paul here.


Sosandar interview

Just to say, my interview with Sosandar (LON:SOS) management (in which I hold a long position) has been delayed until next week, due to delays from my side collating all the questions & planning the thing. Sorry about that. So there's a window for any late questions from you - please add any additional questions into the comments section below. Thanks.


Buying opportunities?

I've been mentioning for a while, how the recent market sell-off seems to have been fairly indiscriminate in nature. This has created (selectively) some smashing buying opportunities. Indeed, we're seeing strong rebounds in some shares recently, on reporting good news.

Some people like to imagine that the chart tells us everything about the company. Sometimes it does (e.g. if insiders are selling, due to a poor outlook), but sometimes it really doesn't, especially with small caps. All the chart is actually telling us, is a gauge of the current balance of investor sentiment. In a small cap that can be the actions of just a handful of people transacting in the marketplace. Everyone else is doing nothing - as the bulk of the shareholder base will not be transacting at all, most of the time. Institutions generally don't buy in the market for small caps, because there's inadequate liquidity. Buyers & sellers could be backed up, unable to trade in the size they want.

Put this together, and it means that, at times of high investor anxiety over macro factors, small cap prices can deviate considerably from what is logical. Therein lies our opportunity.

Here's a great example of what I'm talking about;


Water Intelligence (LON:WATR)

Share price: 396p (up 10.0% today, at 08:19)
No. shares: 15.23m
Market cap: £60.3m

January corporate transactions & technology update

Water Intelligence plc (AIM: WATR.L), a leading multinational provider of precision, minimally-invasive leak detection and remediation solutions for both potable and non-potable water is pleased to announce a series of corporate transactions that reinforce its growth trajectory for 2019 and beyond.


Several actions re franchises are mentioned. I like the bit I've bolded below;

These transactions underscore that American Leak Detection ("ALD") and UK-based Water Intelligence International ("WII") business lines are complementary and growth is accelerating.


New product…

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