More accurately the heading should read to top slice or hold, but I couldn't resist borrowing the lyrics from the Clash, for a little dramatic effect.

I am sure that the continuing increase in the share price of Bioventix (LON:BVXP) will not have gone unnoticed by many members of the Stockopedia community, who like me hold the share. The increase in the share price has resulted in Bioventix (LON:BVXP) representing about 12% of my portfolio. In the interest of risk management I have been tempted to top slice but as yet have resisted. The decision, whatever it may be, comes down to, in my opinion, the age old conundrum of fear versus greed.

In support of the former the share price has risen significantly and is trading at a PE of 30 plus, next year's earnings. Top slicing helps to re-balance the portfolio and provides funds for alternative, although not necessarily more successful investments. Finally it helps mitigate the potential impact, should the fast approaching interims disappoint.

The alternative view is that as a company Bioventix (LON:BVXP) has historically under promised and over delivered. Peter Harrison is first and foremost a scientist. He is pragmatic and not given to hyperbole. So when he states that he remains 'utterly convinced' in the ultimate success of the new troponin test (Sharesoc October 2018), he is to be listened to.

Bioventix (LON:BVXP) enjoys enviable institutional support e.g Keith Ashworth Lord (Buffettology Fund) and Gervais Williams (Miton), also Peter Harrison currently holds about 8% of the company.

Depending on one's view you may side with Lord Lee who advises sticking with something good if one is already invested. Conversely Stephen English in his investment philosophy states "I strive to increase robustness by consistently recycling the expensive holdings back into the cheap holdings". I have great respect for the views of Lord Lee and Stephen English and endeavour to learn from both. In the end it is a matter for the individual.

All views and thoughts welcome.


Jonno




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