Shares splurge has alarm bells ringing

Shares splurge has alarm bells ringing

Business
The Punter has raised his stake in ShareRoot, the company which manages social media consent, to 500,000 shares at a total cost of $1,480.

The Punter has raised his stake in ShareRoot, the company which manages social media consent, to 500,000 shares at a total cost of $1,480.

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Why would anyone invest in a company whose shares cost a third of a cent?

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Why would Tony G buy millions of shares in one of the Punter's worst investments?

According to his biography on Wikipedia, Antanas Guoga, known as Tony G, is a multi-millionaire poker player, businessman, philanthropist and a Lithuanian Member of the European Parliament.

As a kid, he was Lithuania's Rubic's Cube champion before he and his family moved to Melbourne. He reportedly began his career washing cars and repairing sewing machines, before moving on to mortgage broking, investment banking, insurance, real estate and internet projects.

According to "substantial holder" notices to the ASX, Antanas Guoga, of Caulfield North in Melbourne, bought 2.8 million shares in ShareRoot (ASX code SRO) at the end of September and then 44 million shares in December. That put him over the five per cent limit where he had to declare his interest.

He has since bought another three substantial parcels of SRO shares, he now owns just under 10 per cent of the company.

The Punter cannot be sure ShareRoot's Antanas Guoga and Tony G are one and the same.

Why would anyone invest in a company whose shares cost a third of a cent?

Perhaps because ShareRoot claims to be a "growing leader in the $14 billion consumer data and privacy space".

Perhaps because it has developed or acquired four internet revenue streams, manages social media consent, marketing, games and other companies' use of user-generated content.

Perhaps because it has a pilot project, starting February, using its social media software for medical trials. St Vincent's Hospital Melbourne, Cancer Trials Australia and Neuroscience Trials Australia have agreed to take part.

Meanwhile, having heard nothing from JaiJaifu Modern Agriculture about a possible dividend, he sold his shares for a 40 per cent profit.

  • The Punter has no financial qualifications and no links to the financial services industry. He owns shares in a number of companies featured in this column.
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