Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Having warned in September interims that “the group remains at risk unless secure additional finance is achieved”, organic wastes technology group TEG (TEG) has now requested the suspension of trading of its shares “pending clarity on its financial position”.
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Comments
J P Spaghetti
“Once again if a company warns that it may go tits up you should automatically sell. Don’t even consider hanging on.”
I learned that lesson the hard way! Perhaps one scenario where it may be worth hanging on, though, is where (i) the SP has dropped so much at the time of the warning as to hardly make it worth selling and (ii) there is strong evidence that the drop has been accompanied by skulduggery – sufficiently strong that compensation for those who do hang on may be realistic (and worth much more than the current SP – highly unlikely with AIM stock, I guess). This assumes the right / ability to take such action would be lost on selling. Sorry if that sounds a bit ‘long on QPP’!
J P Spaghetti
Re. (i) in my last post here, I was referring specifically to occasions when the SP drop has been dramatic almost overnight, so not resulting from a gradual decline over an extended time.