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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.

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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).

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