I’ve been interested in CAP -XX (company information see here) for the following reasons.
1) CAP have a patent for the worlds smallest supercapacitor. These are like mini batteries. Please see here for more information.
2) Small company that previously traded at a much higher sp. Believe they have stagnated due to cashflow issues.
3) CAP have a licence agreement with Murata who are currently buying similar type companies. Murata could potentially make a bid for CAP-XX.
4) The timing of the patent for the worlds smallest super capacitor is perfect as product is ideal for wearable technology and IoT (Internet of things). IoT being something we are going to be hearing a lot about.
5)Murata are selling components to Apple for their smart phones. This could be a route into Apple for CAP-XX.
6) It is possible that CAP-XX are currently arranging with Murata for them to mass manufacture their components under licence. The sp should rise when we get an RNS about components being manufactured or a significant announcement about an order.
7) CAP-XX have just received £1m for investment via a placing of new shares at 3.25p. You wouldn’t therefore expect the sp to fall below this level in the near future.
8) CAP-XX have recently become of interest to many private investors. The share price has therefore become more volatile. At the current low share price the opportunity exists for the sp to double in the short-term providing the opportunity to remove original capital whilst retaining an investment the business. This being a strategy I use for risky investments.
This is a speculative investment and the returns will be either significant or zero.
Time is running out to invest in CAP-XX as business is involved in road shows mid June, awareness amongst investors will therefore increase regarding the businesses potential.
The reason for investing now.
The following chart indicates that resistance is strong whilst the support line highlighted suggested that it should be possible to purchase shares at c3.45p. The support line however is getting shallower and shallower.
The sp in May has fallen by 34%. The last two candle sticks however indicate a bearish engulfing pattern suggesting the fall in the sp is about stop and a reversal happen.
Today I invested at 3.44p based on believing this is about as low as the share price will fall. Time will tell if I have made the correct decision and entered at the bottom.