Aim higher......

Hope people have enjoyed the bank holiday, lots of #NEW tweets, hope it works out for folks, but also hope folks understand the longer term consequences.

I posted a blog back in March http://icebergshares.blogspot.co.uk/2015_03_01_archive.html

It was a not so veiled viewpoint of something that investors don’t think about too much.

I’ve also tweeted about the frothiness of the market at the moment. The main point I was making about this frothiness, was that the market is not behaving correctly, we are seeing very large rises and falls without too much substance. Yes this always happens on AIM but not..Repeat NOT to this extent.

For me this rings alarms bells. Rome fell due to the decadent nature of their system.

AIM is decadent.

There is far too much of a cozy relationship between nomads, companies and brokers. This impacts the market doubly through a very cozy relationship, between nomads, companies, brokers and powerful private investors and investor groups.

Add on a layer of corruption, from all of the above and we get nomads having to apologise for the rampings of CEO’s, forward selling of placements and market manipulation, to allow risk free high margin placements, the shafting of shareholders al la Afren.

Given all this, what’s happening at #NEW has been on the cards for ages.

I have no doubt that over the next few months we will see more of this, along with suspensions, CEO resignations, court action and warnings from companies.

Make no mistake fortunes will be won and lost. But most investors (notice I say most and not all), will be playing a game of Russian roulette.

As a private investor you need to make a decision, play the game, take the risks and gain the rewards. Don’t play the game and perform a level of due diligence on any investments.

So what can investors do?

Find out who the nomad, broker and advisers are.

Is the company “friendly” towards certain private investors? (this is a bad thing).

Does the company act professionally at all times?

Are leaks common?

Does the company survive on hype?

Personally, I’ve been steering clear of dodgy companies, despite favourable sentiment, for a few months now. For those wondering the boring, high growth, professional companies such as #AEG are the ones I am hinting at as good companies to invest in!

Hope whatever peeps decide works out for them.