Good observation GC. I couldn't agree more. While technically if...

Good observation GC. I couldn't agree more.

While technically if they get the float away at the issue price it isn't over-priced certainly it was a pretty poor year for Small Cap floats.

Of the ones I followed closely the following Angels/Unloved list shows how tough it was to pick the ones that would succeed:

Angels: RHP, MPL, IQE, GMA, BAL
Unloved: MVF, ASH, PSZ, PGR, JHC, E88, ACN, VET

Even your strategy of waiting a few months and buying didn't help me with some on the unloved list. Picking the bottom is very hard.

I think there are a lot of undervalued new small cap stocks now. It's a sort of ASX deflation.

There's not enough interest after the initial stag race to support the float price. Retail investors can't generate the volume on their own and the Institutions are happy to back the banks and Telstra for CG and divs and don't stay the course. Really you can't blame them. Their charter is not to create returns next year, just this quarter.

I think MVF is worth more than $1.30 (obviously or I wouldn't have brought) so I am holding after buying my first lot at $1.60 and a smaller parcel at $1.40. But realistically $1.90 will be hard to achieve and you have the added risk of a Management team who have stumbled at the first Qtr in FY15.

I have a similar situation with PSZ (without the stumble!).

Like you I am now wary of SC floats and prefer to watch and wait. Decline after the float is the new normal

Sorry for the ramble but I though your comment was a good call.