29-11-2010, 10:31 AM
(29-11-2010, 10:19 AM)mightyreds Wrote: Just thinking, aren't investors of kingsmen and other stocks that are illiquid like MTQ worried about the liquidity issue?
Because the trading volumes are so low, when the market crashes they tend to fall the most too as most investors tend to throw at any price to get out.
Also, sometimes you want to liquidate your holdings to put the funds into other uses but you can't because there just aren't any buyers at the price you want.
It's frustrating isn't it?
For this reason, I'm keen on these companies but holding back because I've had my fair share of bad experiences with coys with illiquid trading volumes.
When the market crashes, we can buy more at a cheaper price as the company is fundamentally strong.
Those who invest in Kingsmen should be long term investors (5 to 10 years horizon) and I'm sure the liquidity will pick up soon when more investors learn how good this company is.
I think people shouldn't invest in illiquid companies like Kingsmen if they are not comfortable and need the money in the short term.
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