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Cautious people insist on steering clear of small caps since their outturns can be so disappointing. But it takes only one serious winner for the disappointments experienced elsewhere to be swamped.
I had traded Elektron (LON:EKT) perhaps twenty years ago and got out at the then top. As the price slid I noticed that there was some clot who persistently slagged off the company and, curiously, Keith Daley. I could not see the basis of the criticism but felt that Keith was worth backing since he was and remains a sensible and reasonable man. So I bought 1m at 6.5p.
I sold 300,000 at 50p but am running the other 700,000. And, post the Bulgin sale, I await a 65p cash tender offer (payday late October/early November). Apparently, there is no CGT within the company on the realisation of £95m. Some think the rump of unsold shares should stand at 45p – for, otherwise, why would the shares stand at 55p? In the event I reckon EKT is still a buy. It will change its name to Check It.
I have previously mentioned that my wife’s scrambled eggs are vastly superior to those encountered at The Ritz. To this I add omelette. Quite why this should be so God alone knows.