“The bigger the base, the higher in space." I am taking a look at the AJX stock chart.
The stock has been flatter than a pancake for almost a year. And trading volmoe has dried up to the point that on some days not a single share trades.
This brings to mind the quote in the subject line above.
“The bigger the base, the higher in space” was cited in a 1998 book by Louise Yamada
It also brings to mind work done by Ibbotson and Chen that I have studied closely.
“Ibbotson sorts smaller-company equities into different classes based on their size and liquidity over a 37-year period, some interesting facts emerge. The worst-performing group is highly liquid, small-cap stocks, which returned 5.9% annually over the period. Ibbotson’s explanation is that these are micro-cap stocks that have been “pumped up.” In contrast, the equities that have produced the best returns over 37 years were illiquid small-cap concerns, which generated an astonishing 17.87% annual return over nearly four decades. In all likelihood, these companies represent small, overlooked companies that attract little interest or trading activity.” – Financial Advisor Magazine.
I love owning stocks that are flat and illiquid, and where I have had time to accummulate large positions at attractive prices.
Soon and inflection point in AJX revenues will become evident. When it does, hang on to your hat AJX investors. The take off in the stock will make it look like Branson and Bezos were on a hot air balloon ride.