Kip Mcgrath Education Centres Limited ("KME")

[DarkHorse]

Sorry to hear that.
Trying to keep the smile off my face but can't!!
Don't worry we have all been there.!!!
The fun of trading illiquid stocks!!

Cheers Percy - cheered me up somehow (particularly coming from one of the posters whose advice I follow most avidly). Just checked my email and snaffled some more - 150 this time - $28 worth

[DarkHorse]

I like illiquid stocks because so many people are put off them by their lack of liquidity

It means there are more opportunities to buy good stocks that people refuse to buy just because they are illiquid

inevitably, as a stock grows and its profile increases then its liquidity increases

i.e. I was the only buyer on MBE for a couple of weeks at around 2c, now six months later at 30c it trades millions a day

Of course if you want to get out, then you are in trouble, but it just means there is more pressure to get your research right, and make sure you back companies that have strong medium to long term fundamentals so you can ride out the short term lack of liquidity

I take your point in terms of general strategy (and thank you by the way for the MBE tip!). Having not invested in companies this 'micro micro' with such a huge spread before, do you have any suggestions on buying tactics for this one right now? I know it's an art not a science but it's often hard to tell if a price lift is a one-off or part of an upward trend (I missed a lot of MBE gains for example by being 'patient' with a reasonable bid...)

[steve fleming]

I take your point in terms of general strategy (and thank you by the way for the MBE tip!). Having not invested in companies this 'micro micro' with such a huge spread before, do you have any suggestions on buying tactics for this one right now? I know it's an art not a science but it's often hard to tell if a price lift is a one-off or part of an upward trend (I missed a lot of MBE gains for example by being 'patient' with a reasonable bid...)

It depends on 1) how patient you are; and 2) how much you want the stock

I am generally pretty patient and am happy to wait until an opportunity presents itself to buy when volume is available (as it was in early Dec for KME)

With a stock like KME where there is not a lot of price sensitive news, it generally has its major moves following the half year and full year results....so if you expect the half year result in Feb to be disappointing then best wait till after the results are released, if you think it will be a good one then see if you can get a holding before the results in the next 6 weeks or so.

getting positions in illiquid stocks can be a bit like fishing - there are sellers out there (i.e. with KME at the moment there is 20k @30.5), but sometimes in order to reel them in, you have to tempt them by playing round with your bids a little and seeing if the sellers are willing to compromise.

But first you need to do your research and determine what price you are willing to bid up to.

[DarkHorse]

Great advice thank you Steve, much appreciated.

[percy]

Yeah right.!!!
I now have Craigs' traders after hours phone numbers.Think they are there to 6pm NZ time.!!
Thanks Steve,Yes got there in the end,but at 4.30 NZ time I thought I had missed the bus.!!
Never did buy any MBE.Think I was caught up in a cash issue,rights issue and a SPP plan at the time.

Oh Jesus Percy you have done it again.!!!
Been hanging around trying to buy 5000 AKG at 92cents for the last couple of days.Was prepared to go to 96cents. Bloody hell seller at 96 cents appears at 5.15 NZ time.
So rang Craig's trading desk.Not pleased to receive my call.!!! Did tell them it is the first /only time in 40 years.!!!!!!
Must ring my advisor on his cell phone in future.Will do in future.Thank you..!!!!!!!!!!!!!!\\
Well am now the proud owner [even if told off] of 5000 AKG at 96cents.!!!

[steve fleming]

KME’s now live online tutoring services in conjunction with google:

https://helpouts.google.com/102926021511725784340


87c / min, I guess it all adds up.

[steve fleming]

KME have reduced their debt by about half since 30 June 2013 ($3.8m to $2.0m) through the conversion of the notes ($1.5m) and repayment of bank debt ($300k)

This represents interest saving of about $100k

Then there is revenue growth from new centres that have come on board; existing centres that have converted to the full service gold model; and existing centres that have switched to % of revenue from flat fee

So hopefully a decent up lift in both top and bottom line

[Huang Chung]

My latest foray into the illiquid small caps is Capilano Honey (CZZ).....a real honey pot in my view .

Probably should have it's own thread, but I imagine there wouldn't be much interest in this tiddler.

Anyhow, a the half yearly report seems quite encouraging.

http://stocknessmonster.com/news-ite...E=ASX&N=781514

[percy]

Probably should have it's own thread, but I imagine there wouldn't be much interest in this tiddler.

Anyhow, a the half yearly report seems quite encouraging.

http://stocknessmonster.com/news-ite...E=ASX&N=781514

"In view of the vagaries of the agricultural market."
"The Australian crop has suffered considerably from unfavourable weather conditions that have impacted production,such as the recent drought and heat waves."
An awful lot of areas outside the company's control.Add to that false labeling of Manuka honey on the world markets,plus currency fluctuations means too many challenges for me.

[Joshuatree]

looks like you've had a good gain there HC. looks like the longer term global demand for high UMS honey will underpin things.