SDI Group reduced to 2.5%

SDI Group (SDI.L AIM All-Share, Market Cap £88.1m, 89p, 2.5% of JIC Portfolio and 12% of JIC Top 10) 

One of the biggest challenges in investing is to do nothing but since I last wrote about SDI on 17th December it is up 21%. 

It is now valued at 25.2x current year ending April 2020, falling to 21.0x April 2021. In short, I think it has got ahead of itself and I think on balance +20% over the next year will be a stretch. I still like the strategy and the management but think it is ripe for profit-taking.  

I have this morning reduced the Reward rating from High to Medium and have thus reduced my holding to 2.5%. Hopefully, I will get a chance lower down, to raise the Reward rating again but if not, so be it. I think I can find a better use for the cash raised this morning.

Screenshot 2020-01-16 at 08.50.56