Triggers

Thanks to Dagens Industri

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In July, I made some reflections on triggers. My observation is that during the past two years, it seem that the market needs more than just a positive press release before there is an effect on share price. It has removed some of the craziness – which had its own charm – and in most cases made the road from IPO to profit longer for the individual investor. Nevertheless, some craziness remains in the market. This week BrainCool went up 88 %. Out of the blue. The company did nothing to start this. It all began … in a newspaper.

In the business newspaper, Dagens Industri an article appeared on the next shares to rise 1000 % in five years. The writer, Ulf Petterson, identifies four shares with that potential: Eniro, Kambi, Lauritz – and BrainCool. Eniro is listed on Nasdaq small cap, Kambi and Lauritz on First North, and BrainCool on Aktietorget.

After this article in the newspaper and on the DI-page Eniro was up 70 %, Kambi 10 %, Lauritz 60 %, and BrainCool 88 %.

There is no doubt that this article is the best thing that could happen for these four shares. Dagens Industri pulls them out of the white noise of thousands of companies and serve them on a golden plate for all their readers and the visitors on the homepage.

Compared to other triggers that usually last one or two days, the rise so far has continued three days in a row. BrainCool went up 21 % on Wednesday, 47 % on Thursday, and then took 5 % on top Friday. I suspect the magic still works as long as Dagens Industri keeps the article on top of their web-page.

The funny thing is that the fundamental business case is the same as on Tuesday. It the perception of the market towards BrainCool that has changed.

Recyctec triggers in comparison

To compare the performance of the BrainCool share, Recyctec Thursday announced that they have solved the immediate cash-need by issuing a convertible loan of 5 MSEK. This is good news, since it strengthens the fundamental business case, and removes a lot of the uncertainty to how Recyctec will finance market penetration. The share went up 23 % after this press release.

Contrary to BrainCool, though, this lasted only one day and on Friday, the share fell back 3½ %. To make a lasting impact on the investors, something more is needed.

I guess the short way of summarizing this is that triggers only works if they changes the perception of the company. And in this Ulf Petterson helped as he is probably perceived an expert. So from BrainCool investors to Ulf Petterson and Dagens Industri – thank you!

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