Pay for growth

When buying things, we usually compare the price across different shop, hoping to get a bargain. This is not usually the case with stock investing, investor watching the price going up has tendency of catching the train. However, generally the seasoned investor knows when to buy and hopefully buy on cheap.

I was reading extensively recently. In general, I would also like to buy on cheap, but sometime it is not easy to carry out. Good stock will be in hot demand, and it pays to pay for growth. Don't buy cheap, buy value.

Market knows what is going to happen

I was puzzled by Etika share price for past two days, it keep going up for no apparent reason. The answer is out now. Templeton fund is subscribing to the convertible bond that the company issues. The conversion price is 1.05 which is higher than current share price. However, if you look at the long term and potential of the company, it is very cheap. The company is trading at prospective PE of 9. If the earning does grow strongly, my estimate that it is going to worth a lot more.

That's the exciting part of investing in small cap. It is possible to get multi bagger faster if the company is able to grow strongly.