The HotCopper (ASX: HOT) share price is down 14% to 15 cents today despite the share market message board operator releasing no specific news to the market.
Since its August 2016 initial public offering at 20 cents per share the stock is down 25%, which is the kind of atrocious return likely familiar to many of the site's users.
In fairness to its owners it did post a net profit of $361,000 on revenue of $2.2 million for the six month period ending December 31 2018, although both numbers were down 46% and 10% respectively on the prior corresponding period.
For the most recent period it also paid no dividend, compared to payments of 1 cent and o.5 cent per share for the two prior periods.
However, as a profitable business it's a long way ahead of many of the companies discussed on its message boards.
The site makes most of its money from advertising and as an 'investor relations tool' for ASX-listed companies seeking exposure to its substantial user base of retail punters and investors. For example micro-cap or 'speculative' ASX companies will commonly use paid advertisements to promote themselves to site users.
Generally though the site is not much more than a tax on the gullible, as its normally less-sophisticated users tend to promote speculative businesses that are not investment grade.
However, there's no doubting its popularity among day or technical traders as a source of tips, guesses, or opinion on stocks at the speculative end of the market,
Overall, as you can probably guess, I'm not a buyer of HotCopper shares…
