What to do when your share hits -10%?

mr_fishbulb

Bought some shares in an AIM listed company at the end of last year. Financials looked good. Earnings and profit increases over the last 3 years.

In June this year it announced revenue increased by 10% and pre-tax profit up 16%. Dividend was increased by one third.

I believe it's still as good an investment as when I bought in, and they are expanding both their business areas and offices. But the shares are doing something else. They gradually increased by about 30% until April, then they gradually started going down again and now they're around -10%

Their AGM minutes seemed good, and I can't find anything that would give cause for a drop in value. I'm flummoxed.

Here's the graph:



Not sure what to do. My gut says hold.

doubleJackD

just hold them, -10% is really just noise on aim.

what company is it

Lokolo

If I had the money spare, and thought the share price should be higher, then I'd buy some more.

mr_fishbulb

Lokolo wrote: »

If I had the money spare, and thought the share price should be higher, then I'd buy some more.

That's what the adventurous side of me was thinking, but as it's an AIM share I don't really have much info to go on, just my gut.

doubleJackD wrote: »

just hold them, -10% is really just noise on aim.

what company is it

It was fine when it was going up by 10%, but I'm more sensitive to the falls

Company is Red24

barak

mr_fishbulb wrote: »

.....Their AGM minutes seemed good, and I can't find anything that would give cause for a drop in value. I'm flummoxed.....

This might :undecided

"…the dependence on one or two key accounts [HSBC and AIG] for a significant proportion of our revenue remains a key risk but the board is endeavouring to reduce this risk by broadening the customer base."

http://www.iii.co.uk/articles/42783/red24-extracting-value

mr_fishbulb

barak wrote: »

This might :undecided

"…the dependence on one or two key accounts [HSBC and AIG] for a significant proportion of our revenue remains a key risk but the board is endeavouring to reduce this risk by broadening the customer base."

http://www.iii.co.uk/articles/42783/red24-extracting-value

Yeah but that hasn't only just been the case. They were their key clients when I bought the shares.

IronWolf

tbh I dont really blink at 10% variations. Its not a big enough fall to really justify averaging down or that something horrific has happened.

When its down 25-50% I consider whether to buy more, or if I've made a mistake. I had one of those last month, decided to buy more but put a limit price on it. It didnt fill because it surged 15% the next week, for no apparent reason either lol

I have another share that was down about 20% last year, now its up about 10% not including dividends. Nothing in the business itself has really changed in that year

barak

mr_fishbulb wrote: »

Yeah but that hasn't only just been the case. They were their key clients when I bought the shares.

Apparently they have been for some time - too long - they seem to be admitting. Couldn't that be the problem? I suppose the risk is how they would manage if they lost one or both of those accounts. :undecided

Definitely only for the speculative portfolio!

doubleJackD

about 7 years ago i bought 2000 UK coal at 150pence, 6 months later they were 650p (nice 10k profit), they are now 5p or something

I'll swap the OP's loss anyday!

mr_fishbulb

barak wrote: »

Apparently they have been for some time - too long - they seem to be admitting. Couldn't that be the problem? I suppose the risk is how they would manage if they lost one or both of those accounts. :undecided

Definitely only for the speculative portfolio!

Well the actually wording is exactly the same in last year's annual report

They have diversified in their service offerings a little, bringing in a food safety alert service.

It's my only AIM share. Got 3 more FTSE100 ones, and a NASDAQ. Plus some funds, so it's only a small portion of my portfolio.

cloud_dog

Answer...... Wait for the next 90%

I think you need to take a wider view of the SP performance and relate it to the overall market, i.e. most SPs have dropped over the last few months irrespective of their actual delivery.;)