Whoops! The Punter was not cautious enough last week when he placed an order for Rubicon Water (ASX code RWL) at 65 cents.
Before the week was out, the shares fell below his buying price and some of his money has already evaporated.
Part of the problem is that the market in this water controller is not very liquid - at the time of writing, there were only seven buyers and 11 sellers in the market. A single small trade can be enough to shift the price.
The Punter can only hope that the company is right in believing that the current half-year will be better than the last.
The RWL purchase means his cash reserves have dwindled to a mere $7000, which makes him loath to buy anything.
READ MORE: Warming to water stocks despite soggy start
However, the latest crowdfunding offer from OnMarket brokers has piqued his interest.
Techni Ice reckons it has the world's best coolboxes and freezer packs that last up to six times as long as gel or ice. Sales in the 2022 financial year were up 28 per cent to $2.2 million, resulting in net profit after tax of $140,000. Sales are forecast to reach $2.4 million this year.
It supplies commercial as well as recreational customers - its biggest box is 1100 litres, big enough to need a pallet and a forklift. Commercial customers include Coles, Qantas and Pfizer.
It's looking for up to $3 million at 55c a share to fund expansion. Investors will receive free cooler packs, boxes and future discounts.
Like all crowdfunding, however, the big snag is that there is no retail market in the shares unless or until the company is sold or lists on the stock exchange - which may never happen.
The directors say they aim to achieve a liquidity or exit event for shareholders in the next three to five years, but there is no guarantee. The offer closes on May 25.
The Punter may decide it is a cool investment.
- 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.
