Dedicated followers of fashion
There is a new trend in investment promotion. I call it the “Have I Got News For You” strategy. It appears to operate on the following basis:
- Buy every newspaper, watch every news show, listen to radio news
- Identify any technology, trend or sector that is getting heavy news coverage and jump on the bandwagon
- Design an investment memorandum low on fact but high on news reports about the tech/trend/sector
- Watch the money roll in
- Fail to hit wildly ambitious targets and ask for more money
- Disappear having failed gloriously
A little harsh perhaps……but you get the gist. Whilst it is true that, for investors, timing IS everything; I can´t help but notice that more and more of the investments that cross our analysts desks are fashionable as opposed to well-fashioned. And that all the fashionable offers are promoted by absolutely everyone claiming to be an authority on investment. As always it is the more hidden gems that hold the most promise.
We have just been asked to help with a raise for a company that is well established, environmentally impeccable, scientifically excellent, very well managed, and has the opportunity to acquire a competitor and consolidate a strong market position in an industry that is vital ecologically over the coming years. If they can raise £18m then they will add more than £160m to the top line and £20m to the bottom line. A flotation will follow the raise and acquisition of the competitor in 2019. Our analysts expect investors to achieve a minimum of 6% per annum yield on this investment and an additional capital gain of at least 50% on share price over a five year period. The entry level for this investment is just £7,500.
“Two roads diverged in a wood, and I – I took the road less travelled by, and THAT has made all the difference” – Robert Frost
You won´t hear about this opportunity anywhere else so if you would like to know more just ask……