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Malcolm Stacey of ShareProphets – Feedback PLC, Don’t You Hate the Small Profit-Takers?
This firm which makes software to help in assessing cancers and other serious illnesses has been recording some big progress.
The latest news to come in was that the National Health Service’s research arm has produced ‘an alert’ to the affect that this company is worth looking at.
The share price put on 15%. It kept that level for most of the morning. Then the price began stepping up. There were small twitches until the golden share reached nearly a 50% rise on the day.
This put Feedback at the top of the overall winners board. But not for long. The zenith proved to be a spike and the share inched down again to end the day at just 15% up.
I checked the number of buys and sells throughout the day, and at no point did purchases exceed the sales.
This rise and fall pattern is so common for penny shares these days. And I think we all know what’s going on.There is a large army out there who will take a profit, no matter what the great future might lie in store for the company.
Feedback may not yet have recorded a recent profit, but it already nets £300,000 every 6 months by way of royalties and as their software is so desirable to find and treat serious cancers, I cannot see it failing to be a tasty go-er in the near future.
Yet, so many holding the share are willin to take a short term profit. And they do that even though the spread is, as I look now, 20%.
I think such short-term strategies are a mistake. They won’t realise much cash, because I notice the parcels of shares sold were largely tiny, many under £300.
This could be a multi-bagger. I’m not daft enough to say that’s certain, or even probable, but I’m buying the shares and staying in for a few months at least.
But what the heck? They say it’s never wrong to take a profit, and that does take a bit of arguing against. But personally I prefer a big profit to a small one.
Time now for sampling duty – at the Punter’s Return.
Malcolm Stacey has been writing about shares for more than 20 years. His first book “The Armchair Tycoon” was first published in 1998 but a revised 2014 e-version is now available. To obtain a FREE copy fill in the form HERE