SNTY20 Jan 2014 13:47
I haven't posted on here for quite a while as I've been committed to a couple of major projects, but it's great to know that you have thoroughly researched a company and its prospects, and can therefore forget about the day-to-day SP movements.
I predicted in October that once the gap filled up to c.230p, it would rally to 250p shortly after. I also stated that once the 250p resistance from the summer peak had been breached, there would be very little resistance on the way up to previous peak of c.350p from April.
I actually expected the SP to consolidate in the 230-250p region for a few weeks before starting the next leg up, but it seems like the interest continues to grow in SNTY, and the SP continues to be driven north. I had planned to sell a chunk of my SNTY shares at around 250p and wait for a pullback to buy back, but having seen the strength of the move and the lack of reistance at 250p, I have decided to hold strong.
I said back in October that SNTY could easily be worth £20-£25 million before any trading update, and we have since had a fantastic update, further integrations, director buys, a sales director appointed, and most significantly the granting of the US telecoms licence.
The fact is that if SNTY were listed on the NYSE, it would easily be valued in the region of £50-£100 million IMO, based purely on their growing market share and the quality of their integration partners.
I expect much more positive news to roll in over the coming days, weeks and months, and therefore I see it as slighly short-sighted to sell out your entire position at this juncture. I understand that profit is profit, so I can understand traders reducing their exposure after the recent rise, but selling out entirely is a dangerous game IMO, as there are potentially exponential gains to be had from holding this share for the medium/long-term. You wouldn't try to catch a falling knife, at the end of the day, so why try to do the opposite by selling out of a strong company where the SP has just broken an important resistance point, and is establishing itself in a long-term uptrend?
The above is all IMO and I would never suggest for anyone to buy or hold their shares without first properly researching the company and its prospects. However, I think SNTY is likely to be in the top 3 best performers on AIM in 2014, so for me it's definitely worth committing a little time to research.
ATB
Faz