Date of inclusion: 10 March 2021
Share price on inclusion: $0.35
Date of exclusion: 12 October 2021
Share price on exclusion: $0.75
After a six-month investment in Revasum we are taking profit on RVS. The stock has rallied very hard recently and we think there is downside from here.
We still like the company fundamentally, but it’s hard to argue with a return of 120% in six months.
What is the risk in the near term?
One of the reasons to invest in RVS is the expected order flow for the company’s polishers and grinders for Silicon Carbide wafers. Since we have owned the stock, the company has only announced one Purchase Order (PO) for 2 systems. We are still anticipating additional PO’s, we just don’t know when they may come in (if at all).
So, the key risk we see right now is that we sell Revasum while a new PO may be imminent. Obviously, that would be good for the share price and we would miss out on that. SO, adventurous investors could potentially hold on to the stock.
However, at this time we are removing the company from Marc & Stuart’s Top Picks. If and when the stock retreats, we can always decide to step back in at a later date.