There is Retail Buying out There, If You are a Real Company

By: Tom Allinder
August 1, 2008

The steady drumbeat of negativity in the micro and small cap markets continue. Almost everyone I talk to says that the market is drying up and there are no more retail buyers out there. For a variety of reasons that I am not going to get into, people have moved on to invest or trade something else. I agree that there are not as many traders as there were a couple of years ago. Not as many investors either. But for the right Company, this market environment is actually good for them. What is the right Company?

The Right Company is a REAL COMPANY


Let’s face it, many of the companies traded on the Pink Sheets and even some on the OTCBB probably shouldn’t be there. No revenues, no profits and a business that is just in the talking phase are the norm especially on the Pinks. Many of these companies only have stock and no cash to engage Investor Relations or Consultants in any way to help them out in the marketplace. Very recently I have been contacted by companies that have no bid… ie .0000 X .0001 that need help in the market. What can you do for a bidless company? Maybe there is a reason it has no bid? The point is that the number of solid companies are greatly outnumbered out there by the ones that are broke, in debt etc.

What are the Results?

If the market is so bad and there is no retail buying any more then how do you explain The Anviron Holding Company (Pinksheets: ANVH) recent results? Yesterday the Company reported financial results for its fiscal year ending June 30, 2008. The Company posted record revenue of $23.7 million and net profit of $6.44 million, or $0.042972 per basic share. Gross margin was 56.7% with net income at 27.15%. The stock traded better than 2.1 million shares and finished up .0259 closing at .0569 for the day on 31 July, 2008.
Anviron is dedicated to bringing to market "Clean Solutions to Complex Problems" by offering a wide range of biodegradable, environmentally friendly products and technologies that will substitute for many of the hazardous chemicals commonly used all over the world. With the numbers that this Company released on 31 July, 2008, it certainly appears as though someone, or some people or a LOT of people were interested in investing in this Company.

The Future

It certainly appears as though the future of the microcap markets is going to be dominated by the real companies with real products and/or services. The retail buying will always be there for companies that perform in the market. The weak companies will go out of business or, at best, struggle to survive. Maybe this is a good thing? I think it is because we are seeing a huge consolidation taking place now that has not happened at the microcap level since I have been around since the mid 90’s. But never before has there been such an opportunity for the good companies to separate themselves from the rest of the pack!

By Tom Allinder, New River Financial Group, LLC

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