I’m hardly surprised that stock markets around the world have been tanking, indeed the surprise for me has been how long it has taken for people to realise that the global economy is in a very bad way. Moreover, things are likely to get a good deal worse as the US economy weakens.
This doesn’t mean I’m completely bearish about stocks: I favour some small caps. In an era of low GDP growth, innovative and well run small caps will still thrive. One of which, Crimson Tide (TIDE), has been re-rated slightly following good news but it has much further to go.
Another, Seeing Machines (SEE) has barely moved despite lots of evidence that it is making inroads into selling its eye-tracking technology into the Driver Monitoring Systems of automotive manufacturers, while conducting successful trials with fleet managers.
The price is stuck at around 5p and I guess it won’t start to move until official RNS news comes out detailing launch dates of cars containing its technology and signed contracts with trucking and bus companies. I’m taking advantage of this stalled stock price to load up, as opportunities like this don’t come round too often in my experience.
With its technology proven by the likes of Caterpillar it isn’t a jam tomorrow stock but rather a caviar fairly soon one. We’ll see – perhaps I’ll end up eating my words?
One piece of information I haven’t seen elsewhere is that Miton hold around 4% of SEE. And fund manager Gervais Williams is still keen on the stock as he revealed in this article (P62 ‘From Tech Acorns…)
I hold both companies but do please conduct your own research before investing your hard-earned cash.