Here is another small cap which enjoyed a great run up recently. I have posted up a scorecard to show how good it is. However, there are 2 reasons why I haven’t bought into it. Firstly, I haven’t managed to find out why there was this huge run up in March. Secondly you can see that the price has risen for the past 8 weeks out of 9, so it’s a bit late to the party anyway.
I have also included a line on this graph to show you what I call the “intrinsic value” of the company i.e. where the share price equals the value of the total assets of the company. This where a competitor might theoretically buy the company and hence represents resistance (and my line in the sand).
Happy Trading!
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