Halma Share Price (HLMA)

I tend to look at 1,2 and 3 months positive momentum before I invest.

Well HLMA certainly has momentum if you look at the 5 year share chart. What's the minimum period of time you consider when evaluating whether a share has momentum?

OLIG, I'll be honest, I don't know why momentum works but it does in the majority of cases. I agree that fundamentals in the long term will determine what will happen to the share price but the problem is that nobody knows what the future holds. Unless you know something that the market doesn't you are probably better following the market.

OWLS, I’m guessing you are more of a trader than I am. However, the trouble with buying a share on momentum is knowing when that momentum runs out. You say it was a good share when it had momentum i.e. in September last year when it peaked at £40. So why was it good then but not good now when I can buy the same share for less than half that? In the long term it’s the fundamentals of the business that matter. If it grows at 20% a year for the next few years as I suspect it will, it won’t be long before its back to £40. In the mean time it might be volatile as the market tries to work at its value.

OLIG, I bought Halma on the basis of positive momentum. My concern with Fevertree would be is the big fall in the SP over the last few months (down 31% in the last 3 months), although a slight bounce today. It was a good share when it had momentum behind it but not so sure now.