iCar Asia's share price fall
Recommendation
The takeover speculation that drove iCar Asia's share price up over the past six weeks appears to have faded. Showing how volatile the share prices of small start-up companies can be, the stock has now fallen 20% since iCar Asia downgrade from 17 Nov 15 (Hold – $1.08).
As a speculative stock, iCar Asia tends be rather news-driven. So often the best time to buy is when there's not much news about, as is the case now. The next news release is likely to be in January, when the company is required under ASX rules to release a quarterly cash flow statement.
We've made the case for iCar Asia in past reviews and in particular in iCar Asia's road to riches from 30 Apr 15 (Speculative Buy – $0.965). Since then the company has launched a capital raising, which management believes should take the company through to profitability in calendar 2018.
With the share price having fallen below our buy limit once again – and the company continuing to make decent progress – we're upgrading once again to SPECULATIVE BUY up to $1.00 for up to 2% of your portfolio.
Note: The Intelligent Investor Growth portfolio owns shares in iCar Asia. You can find out about investing directly in Intelligent Investor and InvestSMART portfolios by clicking here.