Great post by ‘Scrutable’ yesterday. Scrutable is a 91 year old ‘sagely’ investor who is greatly admired by Neill R.
“Adjust your glasses. You don’t have to be numerate to see. Anybody looking at the 2-year chart from Feb 2017 can recognise, if shown, that after a sharp re-rating over 11 months from Nov 2017 to Oct 2018 (which at 182p had gone beyond its natural equilibrium with the facts), the share price returned to trend in mid Oct last year and has averaged 27% /pa in contination of the original upward trend channel,- which it has followed calmly for the last four months and is now slightly oversold at 123p. One can expect it to oscillate between 115-144p until it responds to a significant news item suggesting a change in financial performance like the predictability of a repeat order string, or to a Capital event like a good acquisition or substantial new financial partner- perhaps a licensee injecting funds as is often part ofa maturing collaboration. Those squealing impatiently for rapid share price appreciation are not investors but speculators, because the reality that the average buyer has made incremental capital profit at 27%/pa is doing very well by today’s stock market performance, and I do expect a substantial breakout ie windfall,‘soon’, but only NR and his closest executives are in a position to make an informed prediction, which I assume will soon be passed to Canaccord for inferring in their first broker’s Note.”