Melbourne IT shares soared: It even surprised us


Melbourne IT (ASX: MLB) jumped more than 5 per cent on Wednesday April 4 2012 after The Motley Fool named it as an enticingly attractive stock.

Even we were surprised by the fast price rise, the shares jumping as high was $1.89 not long after we sent out our free Take Stock email.

We never know what will happen to share prices in the short-term.

That’s one reason we like the buying in thirds, an approach we recently introduced to Motley Fool Share Advisor subscribers.

There’s also no right valuation for a company, it always come down to opinions on growth rates and other valuation factors.

Melbourne IT has guided for a 10 per cent rise in EBIT this year. We think they could be being conservative.

If you are looking for more ASX investing ideas, look no further than “The Motley Fool’s Top Stock for 2012.” In this free report, Investment Analyst Dean Morel names his top pick for 2012…and beyond. Click here now to find out the name of this small but growing telecommunications company. But hurry – the report is free for only a limited period of time.

More reading

The Motley Fool‘s purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691).

OUR #1 DIVIDEND PICK FOR 2016...

Forget BHP and Woolworths. This "dirt cheap" company is growing like gangbusters, and trading on a 5.6% dividend yield, FULLY FRANKED (8% gross). With interest rates set to stay at these low levels for years to come, for hungry investors, including SMSFs, this ASX company could be the "holy grail" of dividend plays for 2016.

Enter your email below to discover the name, code and a full investment analysis in our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2016.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.