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Great Ideas Update – Distil
Distil (DIS:AIM) 2.95p
Gain to date: 102%
Original entry point: Buy at 1.46p, 23 February 2017
Alcoholic drinks minnow Distil’s (DIS:AIM) share price has doubled to 2.95p since our bullish February call. That’s far exceeded our expectations, both in terms of speed and size of profit.
We suggest you sell now while the going is good and reinvest your money elsewhere.
We originally said to buy the high-end vodka, spiced rum and gin supplier ahead of its fourth quarter update on 18 April. That proved astute as Distil subsequently said full year results would be ahead of forecasts.
In the quarter to March, Distil enjoyed continued strong volume and revenue growth. Its Blackwoods gin is growing rapidly in the UK, Blavod Black Vodka’s sales volumes have returned to growth and awareness of RedLeg Spiced Rum is building.
This all sounds positive, yet a 102% profit in two months is too good to ignore. You could hold out for more; or risk decent gains being eroded by other investors taking profit or earnings momentum running out of steam.
Don’t forget that Distil has a weak balance sheet with a low amount of tangible assets. It also operates in a highly competitive market.
Bank those handsome profits now and sell at 2.95p. (JC)