Since the trading update last Friday, the share price of Brainjuicer has taken off like the proverbial rocket. It is up 20% over the last five trading days. On current estimates of 32.6p eps for the year to December 2016, the PE is 24.9 falling to 23 when adjusted for cash of 63p per share.
The corresponding figures for 2017 are eps of 37.7p and a PE of 21.5 falling to 19.9 on a cash adjusted basis. However the company is changing its financial year end to 31 March so I assume that the current estimate of 37.7 pence per share is for the 15 month period 1 Jan 2017 to 31 Mar 2018?
It could be argued that these metrics are not unreasonable for a company in a very niche area that is currently firing on all cylinders and has knocked recent estimates out of the park. I was lucky enough to purchase BJU when its share price was languishing about a year ago and am trying to decide whether to top slice, hold or sell.
All thoughts welcome
Hold. Forever.
