Interactive Investor

Can Jubilee Platinum rise by 80%?

12th February 2016 09:56

Alistair Strang from Trends and Targets

The last time we featured Jubilee Platinum was in July last year at 3.3p when we'd proposed triggering criteria for the price to achieve 5.3p. Annoyingly, we didn't pay attention, but the share performed properly anyway, achieving the target level a month later.

This begs the question, just what the heck defines a time period? We all like to think of "near-term" being hopefully tomorrow or the next day. But kinda soon, anyway. Then we hit "mid-term", which presumably means within a few months - then comes the clincher, "long-term", and we take this as meaning any time between now and the end of time.

By describing our 5.3p as a "(presumably) longer-term 5.3p" really helped no-one as, despite getting the numbers right, our grasp of time should be regarded as vague at best.

If anyone is being a bit jobsworth, our 5.3p turned into 5.425p on the day, so perhaps this implies some strength, but the share has waffled around uselessly since the high of August last. The share now has a problem, as weakness now below 2.65p looks capable of finding a bottom at 1.8p. Thankfully, the 2.6p level appears sacrosanct, allowing some hope for its future.

In the event of the share price now bettering 3.6p, we're looking for growth to 4.4p initially, with secondary a "longer-term", more realistic 5.65p. This would bring the price into a zone where some stutters make sense and we've painted a pretend glass ceiling in pink at this level.

Historically, there is no doubt this price level has some sort of meaning and we'd not pretend optimism for the future until it actually closes above 5.65p. Such an occasion would signal some true recovery coming and, while we would need to rerun the numbers, it appears 8p would make a lot of sense as a long term aspiration.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.