I don’t know much about the financial markets – that’s one of the many reasons I became a solicitor donkey’s years ago. So I don’t quite get how a company like online conveyancing business In-Deed, which with the best will in the world is currently little more than an idea, can float on AIM, have a market capitalisation of £8.6m and within a couple of days see its share price rise a third, from 42p to 56p. The service only actually launched last month.
To my uneducated eye, it looks like a considerable gamble to invest in an untested business model, however pukka the people behind it may be. This is a fact the AIM admission document recognises. Chief among the risk factors is that the company has no history and so there is “no basis on which to evaluate [its] ability to achieve its business objective, implement its investment policy and provide a satisfactory investment return”.
