Thursday 30 January 2014

BUY: Blinkx--Blink and it's gone...a real growth experiment

Price: 97.25p

I mentioned earlier this month when I purchased Seeing Machines that my main intention was not to target growth shares in general. However, I was allowing myself to experiment in a couple of growth stocks. My second growth stock is very much a "risky" move: Blinkx.

With its price north of 150p when I first looked at it, I did not even consider Blinkx as an option. However, with the share price dives brought about by a blogger's criticisms of blinkx practices and technology bringing the price well below the 100p mark I thought it may be worthwhile.

So why try Blinkx?

As growth shares go, Blinkx does look rather encouraging. Its revenues have been growing consistently since at least 2010. What is more, net income--although not entirely consistently growing--are encouragingly in the positive. Certainly I expect the uncertainty and suspicion raised by the criticisms to dent the revenue and income at least a little bit in the near future. However, I do hope the broader trend continues in the future.

The share price clearly shows that Blinkx can attract quite a bit of interest. I therefore hope that once time passes the suspicions surrounding Blinkx will be answered and confidence returns. In turn this should be reflected in the share price which has previously shown the ability to pass the 200p mark. 

A repeat performance?

In many ways this is a real growth experiment for me. I have had the opportunity to see the sharp turns a share likes this can take with regards price. However, I can also see the possibility for an equally sharp redress of the price in the near future.

Would I do a similar thing again in the future? I do not think so. Personally I do not think my nature is well suited to this sort of quick decision opportunistic investment style. For others this may well appeal, but for me this will likely be a unique experience. 

Did anyone else jump on Blinkx whilst the prices were low? Or was it a risk beyond your scope?

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