Quote Originally Posted by Phaedrus View Post
Snoopy, it took me a full month to get out of SCT. This re-emphasised for me the problems inherent in investing in illiquid stocks. Aren't you just a little bit worried about the difficulties you will face in extricating yourself from SCT when the time comes?
SCT shares have risen over 30% from their lows of the last two months. This isn't a surprise considering.....

Actually the SCT share price rise *is* a surprise because there has been no significant news from the company at all over the last couple of months. Nothing. My theory is that it could be defacto insider buying caused by the company setting up an in house share ownership scheme. But I have no proof.

One thing I do know is that on many days SCT does not trade at all. And often when it does then the number of shares traded are less than a marketable parcel. Certainly it would have been impossible to build up a meaningfully sized parcel of SCT shares for those wanting to catch the share price rise.

This is one of those instances where low liquidity works for you, provided you own the shares already. And of course the remaining way to 'already own' that 'meaningful share parcel' is to have your cheque book ready while the SCT share price is on the way down.

I know some of you don't like buying on the way down because you believe the market is always right. Well the market has told us that over the last two months the 'market value' of SCT shares is between 70c and 93c. The market may be roughly right. But surely it is better to buy your shares at 70c, rather than spend over 30% more to end up owning exactly the same thing?

SNOOPY

discl: hold SCT