Buying Delisted Stocks Cheap

A strategy for acquiring delisted stocks at massive discounts by finding disgruntled shareholders and negotiating private transfers. Based on Ishan's experience buying Animoca stock after it was delisted.

Finding Delisted Stock Opportunities

• Look for companies that get delisted but still have strong fundamentals
• Research secondary markets and private transfer options
• Target companies where you have deep domain expertise/conviction
• Focus on situations where institutional investors may want quick exits

Locating Shareholders

• Join Facebook groups of affected shareholders
• Look for disgruntled investors wanting to exit
• Request public shareholder lists to find major holders
• Target institutional investors who may view it as a minor position
• Focus on smart money investors who got allocation through funds

Negotiation Strategy

• Offer 80-90% discounts to last trading price
• Target shareholders who view it as a write-off
• Handle private transfer documentation properly
• Use escrow accounts for larger transactions
• Be prepared for lengthy transfer processes

Key Success Factors

• Deep conviction in the company's future potential
• Willingness to take concentrated positions
• Understanding of private transfer mechanics
• Patience with documentation and process
• Ability to identify mispriced opportunities
• Young enough to take big risks with limited downside

Risk Management

• Only invest what you can afford to lose
• Understand regulatory and legal implications
• Have clear exit strategies and timelines
• Be prepared for complete illiquidity
• Document everything properly
• Consider opportunity costs of capital lockup

The strategy requires:

• High risk tolerance
• Deep research capabilities
• Understanding of private markets
• Strong conviction in opportunities
• Patience with process and paperwork
• Ability to negotiate directly with shareholders