By Steve Moore | Wednesday 19 April 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Shares in recent UK Investor Show 'Dragon's Den' selection (at 2.15p, having also been selected last year at sub 1p), Distil (DIS) have bounced a further just over 5% on the back of a “Listing in Major UK Supermarket Chain /Tdg Update” announcement.
This notes that “another leading supermarket group has listed RedLeg Spiced Rum for its stores. The listing is effective from May” and that “all of our key brands enjoyed good growth year on year during Q4 despite lapping numbers which included Easter promotions in 2016”.
This was with the company continuing to focus on brand building and distribution gains and saw that “unaudited year-on-year fourth quarter revenues rose by 23% and volumes grew by 25%”, with it now anticipated that June-reported results will “be slightly ahead of the most recently updated market expectations”.
The company previously updated on trading in January – when I concluded that there remains macro risk, but on a long-term view I continued to consider that shareholders should profit from continuing to hold. That was with the shares at 1.45p - so there has in fact already been significant rerating since.
Indeed, the shares exceeded 2.90p last week before slipping back, and the quite muted reaction to this latest positive announcement suggests on a short-term perspective that there is a lot already in the price. As such, though I continue to believe there remains an attractive long-term growth story here, particularly for those with a shorter-term time horizon it looks prudent to bank gains. Indeed, that is exactly what the Dragon's Den portfolio has done this morning at 2.975p.
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