I have held CNN for a very long time. I believe in what they are doing but I have been very very frustrated by the lack of share price movement due to the lack of liquidity. I believe the lack of liquidity is caused by it's low share price and the huge percentage move that every tick makes. In the past I would have agreed exactly with you that there shouldn't be a consolidation but for the first time in a while I can see there is real meaningful growth happening at CNN. Others may not agree and most of the investment community wouldn't have a clue but I like to think I am fairly good at predicting key growth moments in speculative companies. So I think the time is ripe for a consolidation on that basis. At the moment there is virtually no investor interest. Penny status discounts most investors from even looking at it. Volume and share price movement attracts investors and publicity. Most companies I end up in long-term were originally trade opportunities. I just think a lot more could be done to make investors aware of this great Aussie company. The other thing to be very careful of when marketcap is so low is of predatory behaviour. It's happened to me at least 3 times in my investment career, a prospective company, all the hard work done, and a takeover done and dusted and full value not achieved. Even had one company once somehow trashed pricewise and taken over by an overseas interest and basically lost my whole investment.
As for penny stocks, far from not being interested in them, I am very interested in them if their fundamentals are sound. My two best lifetime investments were penny dreadfuls when I first bought them. If you can pick them they can be great buying because they're not trading at true value for many of the above reasons I gave. But patience is usually needed.
Right now with CNN I want to invest more but I am just not confident on doing so at these price levels purely based on the manipulation and inability to move. As I said I am confident of CNNs future but the reality is it is still very speculative. I just don't want to be buying at .4c only to have unexpected news and have to sell out at .2c. That's a 50% loss of capital. It's just too risky for my risk profile at this point in time.
Thanks for showing your interest pear. You may or may not agree but I am glad we can have discussions sincerely without the spite shown oin some other forums.
CNN Price at posting:
0.3¢ Sentiment: None Disclosure: Held
