Interesting info. I’d bet that these little-traded stocks typically have high insider ownership as well which probably contributes to part of the extra return
One way to minimize risk is to do a lot of research before you invest. That works with foreign bulletin board stocks as well. Aaron has invested in some Canadian bulletin board stocks, partly because he likes that Canada’s economy is benefiting from the bull market in commodities, and Canada is fiscally stable. The same is true of Australia.
Also, one point Aaron has made elsewhere (and others have made as well) is that small companies tend to have relatively simple businesses, and thus are relatively easy to analyze. This is true of Alloy Steel International. Do a little homework on it and see what you think.
June 30th, 2008 at 5:12 am
Interesting info. I’d bet that these little-traded stocks typically have high insider ownership as well which probably contributes to part of the extra return
July 12th, 2008 at 12:54 am
Here is one stock that fits the pattern of being thinly traded and having high insider ownership: Alloy Steel International (AYSI.OB).
July 17th, 2008 at 1:34 am
Be careful with foreign bulletin board stocks, Dave. Risky area.
July 17th, 2008 at 6:28 pm
Juan,
One way to minimize risk is to do a lot of research before you invest. That works with foreign bulletin board stocks as well. Aaron has invested in some Canadian bulletin board stocks, partly because he likes that Canada’s economy is benefiting from the bull market in commodities, and Canada is fiscally stable. The same is true of Australia.
Also, one point Aaron has made elsewhere (and others have made as well) is that small companies tend to have relatively simple businesses, and thus are relatively easy to analyze. This is true of Alloy Steel International. Do a little homework on it and see what you think.