Close Filtronic (FTC) at market 191p

Filtronic has been one of the top performers for AIM Investor, with the shares up around 150% since we first highlighted the opportunity. The company has done a lot right. Revenues have scaled quickly, margins have moved sharply higher and the balance sheet is now in a net cash position. Add in strong demand from defence and communications markets and it’s easy to see why the stock has attracted so much attention. Momentum is still very much in place and the underlying business continues to deliver.

That said, the share price now reflects a lot of that progress. Valuations have become stretched, forecasts point to a slower pace of earnings growth from here and expectations are high after such a strong re-rating. When a stock has run this far, even good news can struggle to move it higher and any disappointment can lead to sharper pullbacks. Flagging profit taking at this stage is about discipline rather than a loss of confidence. After a standout run for AIM Investor, locking in gains makes sense while keeping Filtronic firmly on the watchlist for another opportunity down the line.

Profit = +150.2%