Have you had success with this strategy in the past though pitwatter? I would also consider buying a stock which fundamentals are overvalued if they had a significant moat on the rest of the industry, i.e. Ramsay health care. But I wouldn?t feel comfortable with this strategy with a new entrant/small cap stock as they have everything ahead of them. Hence value them on a current term basis with any future upside being a positive.
Best of luck
MLA Price at posting:
35.0¢ Sentiment: None Disclosure: Not Held