AIM Investing. The Fickle Investor.

I’d thought I’d pen some thoughts on why we are were we are regards the total lack of credibility in the markets especially on the AIM #Cesspit sector which is as those of you know highly volatile at the best of times:

The biggest single drawback or anchor effecting us is the Global Economic Crisis that has dragged on for what seems like a decade but is in fact only 4/5 years. It now feels as if the madness of the last few years has become the accepted norm. Whereas we had Companies going bankrupt we now have Countries.

It is against this back-drop that Investors should tread warily before parting with their money. If Countries have been caught out bullabullshitting then you can bet that this is endemic right down through the  financial chain. The financial Infra-structure isn’t creaking it is breaking up.

No more are Private Investors in the dark. They have had to re-visit their investments to discover why they’ve tanked. The light has been shone on to a world of lies, greed & corruption. Competent Persons Reports (CPR’s). So called “Independent research”, Broker notes, PV10 valuations, Presentations, Company Newsletters, assets with strategically placed media articles trumpeting how great an investment they are, all have been shown to be bullabullshit. We’ve been treated as Fickle Investors. The old maxim “He who pays the piper calls the tune” comes to mind.

Fickle no more. Private Investor “awakenings” have changed the world of AIM investment. Those that want to survive will have to clean up their act or go the way of the Dodo. Out of the box thinking is needed. The bank of Private Investor has, belatedly, shut up shop.

Banks, Hedge funds, Governments, and the Great Financial Institutions have all been caught lying through their teeth. When reality came knocking (Debt Repayment) the resultant opening of the Pandora’s Box of poisoned chocolates, was a feast too terrible to keep chewing on. Cash became King, money talked; Bullabullshit walked, bankruptcies’ ensued and normal everyday people lost their cash then were told “We’re all in it together” i.e.  You are footing the clean up bill.

Five years after the onset of the financial crisis we are no nearer the end game than we were five years ago. Might you have thought economic policy makers would know what to do next? Alas it now seems that If any thing it’s going to get much worst.

According to Andrew Walker (BBC World Service economics correspondent, Washington USA) in an article he posted on 22 April 2013. The International Monetary Fund (IMF) hosted a conference on rethinking economic policy, organised by four experts in the area, including the IMF’s own chief economist.

The Nobel Prize winner George Akerlof , one of the organisers, from the University of California – had a vivid analogy for the state of uncertainty the economics profession now faces or ‘faeces.’ “It’s as if a cat has climbed this huge tree – the cat of course is this huge crisis. My view is ‘oh my God the cat’s going to fall and I don’t know what to do’.”

Another one of the organisers, David Romer also of the University of California, tried to better him with this analogy: “The cat’s been up the tree for five years. It’s time to get the cat down from the tree and make sure it doesn’t go back up.”

While yet another Nobel Prize winner, Joseph Stiglitz: came out with this; “There is no good economic theory that explains why the cat is still up the tree”.

These are some of the people charged with getting us out of the mess that they got us into in the first place. Five years of bust and we get talk of cats stuck up trees! While Olivier Blanchard, IMF chief economist, freely admits; “We don’t have a sense of our final destination… Where we end I really don’t have much of a clue.”

The break in reality is as plain as the nose on your face. These Economists, Banking, Politicos et al Do not suffer in any financial crisis. They are cut off from the reality of families having to make ends meet while living on the breadline. Never mind living in a shanty town with no sanitation, water, electricity, health care, education or housing. Life lived in an Ivory Tower does not equip you to sort out the worlds problems. It helps to keep the poor? Poor. And the rich? Rich.

Or as my mate Terry (Fuckwit) always states. “The haves & the have-nots. Nothing ever changes.” Terry has a fantastic take on life. A kleptomaniac shoplifter whose survival was predicated by this maxim “Buy a bit, steal a bit Dan. It’s these cheeky fuckers that never buy any thing and just keep ‘lifting’ (Taking) that we don’t like”  Terry lives life from the gutter but has more integrity than any Banker, Economist, Director, Broker, Politician, Hedge-fund manager or Chairman. He’s never lived off State hand outs. He’s self sufficient relying on his wits. 10 years ago he came running past me, chased by several Woolworth employees, clutching his “steal a bit” Easter eggs. Suffice it to say they never caught him and Woolworths went bust!

A Good Management Team with a proven track record of honesty & success is always one of the first pointers to whether a company is more likely to be a success. It’s not a pre-requisite as there are companies out there whose  Management have no proven track record but are as honest as the day is long. Integrity is the first and foremost pre-requisite you should look for in any Management. If there’s a history of bullshitting the markets & UK Investors then you should stay well away from the company, no matter how alluring they seem. If a company has no regard for it’s Private Investors i.e. the normal man/woman in the street then it should be shunned. Do not invest.

Fundamentals matter. Debt free, profitable, cash positive, fair remuneration Director paid companies with a healthy Net Asset Value (NAV) should be preferred to Debt laden, profitless piss-pots run by corpoRAT troughers whose greed always results in dilution  upon dilution, until like the incredible shrinking man they vanish. Most know who they are but still there are the fickle ones who get sucked in. Are you fickle?

It’s going to get a lot worst before it gets better. As my mate Terry (Fuckwitt) says “Those cheeky fuckers who just keep taking need to start buying! 



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