Ansys put out a very strong trading update with headline earnings per share expected to be more than 100% higher at between 13.5c to 15.5c. This stock is unknown to almost everybody. As a result the liquidity remains almost nil with the occasional day above R1m, but mostly a few hundred thousand rand changing hands. This results in a wide bid/ offer spread and makes entering hard. Exiting, especially if things go wrong, becomes extremely hard. So as is generally the case I stay away from these very small, very illiquid stocks. If you’re buying them, you pretty much become a very confident and very longterm investor with your capital trapped until it goes bust or hits the big time.
If you’re buying them, you pretty much become a very confident and very long-term investor with your capital trapped until it goes bust or hits the big time.