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magazineWhy we are taking profit on Ideagen and Yu Group
Ideagen (IDEA:AIM)
93.5p TAKE PROFIT
Gain to date: 45.5%
Previous Shares view: Buy at 64.25p, 22 December 2016
YU Group (YU.:AIM)
437.5p TAKE PROFIT
Gain to date: 52.2%
Previous Shares view: Buy at 287.5p, 13 April 2017
Sometimes the speed of a share price re-rating catches everybody out, including us.
Many investors love to ‘run their winners’, but sometimes we feel it is prudent to lock in decent gains if they’ve been achieved faster and higher than we originally expected.
With that in mind, we’re going to end our trades on Ideagen (IDEA:AIM) and business energy supplier Yu Group (YU.:AIM).
Fundamentally both Ideagen and Yu remain decent companies. We simply feel their share prices have gone high enough for now.
We said to buy Ideagen at 93.5p in December 2016, as one of our top picks for the year ahead. Its share price has subsequently risen by approximately 45%.
Ideagen supplies safety, risk and compliance software to what it calls ‘high consequence’ industries such as airlines, mining and healthcare.
Its shares now trade on approximately 22 times earnings which looks a full enough rating, in our view.
As for Yu, its share price has also shot up by approximately 50% – but this feat has been achieved in a mere six weeks since we said to buy at 287.5p.
We remain positive on its plans to shake-up the business energy supply market but the short-term upside appears limited from here. (SF)
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