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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Reach shares soar nearly 50% in a month

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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
We identified the old Trinity Mirror Group, now called Reach (RCH), as an outstanding value opportunity on 5 December 2019. Negative investor sentiment had resulted in the shares trading at a valuation that looked too pessimistic, especially with the improving balance between digital and print revenues.
Given the difficult industry backdrop we were prepared to be very patient for the fledgling signs of revenue stabilisation to have an impact on the share price. In rare cases, but less rare than we might suppose, value can in itself be a ‘catalyst’ and propel once nervous buyers and enriched sellers to revise their expectations.
There has been no news since our article on 5 December to justify the strong share price performance – up nearly 50% – but even after such an impressive move the stock remains one of the cheapest on the UK market.
Shares can understand why long-term investors may wish to stay the course in anticipation of more gains, but that will require the fundamentals to continue to improve.
Reach will announce its full-year results on 24 February. At the same time the senior management team will present their strategic plans for value creation.
SHARES SAYS: A near-50% gain in such a short space of time is fantastic. However, we’re going to lock in those profits while the going is good and sell out now.
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.
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