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)
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell Youinvest.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
Story In Numbers
- Most Popular Investment Trusts
- Most Popular Funds
- 255: WH Smith’s ever-increasing overseas exposure
- Zero: Hunting cannot provide earnings guidance
- Have UK employment levels peaked?
- Record ETF flows in the first quarter of 2017
- 76,230: Tesla largest US car maker by market cap
- 10 bagger: London Stock Exchange