Saturday, December 06, 2014

Investing on the AIM - Profitable or Perhaps Not?

A few weeks back I decided to buy some KIBO shares upon reading that the company was substantially under valued and was due to publish some positive gold coal etc resource findings in Tanzania. 

How many times have I   heard positive rumours about AIM company shares,  then invested after some personal research and too late  subsequently seen the company share price fall ? 

One difficulty with AIM investments is that share prices in that market have until recently been falling because of investors' disillusion with the  market as much as with the  management of individual companies quoted on the Alternative Investment Market.

However following the UK coalition government's recent decisions to permit UK ISA investors to  include AIM shares in their ISAs  and to make such share transaction free from stamp duty, I decided to invest in a few KIBO shares  although my personal knowledge was fairly limited. 

In the past few days the  KIBO share price has headed north so much so that my original investment is now (possibly  of course only momentarily) almost 100% up. 

Some suggest that  the KIBO gains have hardly started and of course that attracts many more small investors in like yours truly. 

On the other hand if this co really has gold coal uranium etc rights which are more substantial than even KIBO management expectations, then its share price could substantially gain more - if not it will doubtless slump.

As always  do your own research however because if  small investors like yours truly are being taken for a ride, the share price could slump  and existing gains could more than be wiped out or worse.

The hope (and I have not reached the expectation stage) is that no ride is being taken and that the share price of  KIBO will like the  share price of the completely unconnected on-line clothing company ASOS did  a few years back,  soar.   

I will publish more when it becomes clearer whether investors like yours truly, in KIBO shares, are being conned or lucky!

2 comments:

  1. Well the KIBO share price doubled and I then sold amost of my small holding ata good gain. However upon the SP falling back I bought more at a lower price knowing or rather hoping that more news has yet to come. So in tennis playing terms so far -advantage!

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  2. KIBO shares are still an interesting hold despite earlier gains (remember do you own research before investing) and I purchased a few more as there is talk of more company developments (sceptics might reply "isn't there always")!

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