Novice4 May 2009 17:53
How long is a piece of string?
Until the other day when the coy announcemed about the swine flu these were chugging along at about 7p. PURI had had brilliant results but being a rather small coy - capitalised at a few tens of millions - not many people were particularly interested. Suddenly came the flu announcement and the shares took off like a rocket. Now with fear of a pandemic receding the shares have dropped. When they were at the price you paid, 24p, I was speaking to my broker, he felt that if there really was a world wide health issue with people dying everywhere then the shares would go to £2.00 pretty sharply.
My own present purchase price average is now about 18p from 41p!
When I averaged down there was no swine factor.
I did not take a profit since this is a share I really want to hold. It is my present belief that they may be taken-over. Before all the recent events I thought the bid-price would be around 20-25p, now I think that it will have to be nearer to 50p.
Their supermarket process clearly will now be a 'must have' in North America, then there is the medical division and so on. These guys must be inundated with enquiries and they will be making money hand over fist.
Accordingly, in your shoes, I would tuck them away, be patient and just wait until the next results. If along the way an opportunity came to average down I would grab it, however it is your money, you have to make the decision ignoring people like me and always doing your own resea