Rescued by a multi-bagger

Wednesday, 24th June 2009 07:59 - by Boredmum

Definition of a ‘Multi-bagger’; a share that bags you multiples of what you put in. So, I would say that an increase of 261% can be classed as a multi-bagger and, boy, did it come along in the nick of time! Last week, I was feeling totally dejected after my Tower Resources (TIDM code: TRP) loss. So dejected in fact, that I did a test sell on my whole portfolio. I had to put some serious thought into either pulling out of the markets completely or going back out there and trying to recover my money again. I had been holding Pinnacle Telecoms (TIDM code: PINN) for over a year. It was a minnow that was to be a long-term hold for me. I firmly believed this to be an amazing turnaround story in the future. On the Monday, PINN had risen over 50%. I hardly noticed because of what was happening with Tower. On the Tuesday, PINN increased by more than 90%. In the first instance, I removed my initial investment and said “That is me now happy to hold for the long-term”, but then as the price proceeded to rise, I sold some more. You see, I was faced with the dilemma of wanting to stay invested in a company for the potential long-term future or effectively being offered back the thousands of pounds I had lost the previous day. It had to be fate. I pulled out of PINN in three instalments and left a tiny holding in. A little Guardian Angel had arrived in the form of PINN that day. It goes to show that you never know when the next multi-bagger is just around the next corner. Sometimes it pays to keep the faith.