Acrux partially sold from Growth Portfolio

Acrux's share price has risen 134% since we upgraded the stock just seven weeks ago in Ignore the FDA and buy Acrux on 13 Jun 14 (Speculative Buy – $0.80). Better yet, this capital gain is tax exempt due to Acrux's Pooled Development Fund status. The price rise has been driven by a slight improvement in valuation, accompanied by a rapid shift in market perception (see Acrux sales impress on 25 Jul 14 (Hold – $1.285)). Though the company could potentially be worth significantly more than today's price, it requires an increasingly large leap of faith and we recommend gradually...

Acrux's share price has risen 134% since we upgraded the stock just seven weeks ago in Ignore the FDA and buy Acrux on 13 Jun 14 (Speculative Buy – $0.80). Better yet, this capital gain is tax exempt due to Acrux's Pooled Development Fund status. The price rise has been driven by a slight improvement in valuation, accompanied by a rapid shift in market perception (see Acrux sales impress on 25 Jul 14 (Hold – $1.285)). Though the company could potentially be worth significantly more than today's price, it requires an increasingly large leap of faith and we recommend gradually taking profits as the share price rises. This allows investors to benefit if things go to plan, while ensuring they still take home a decent profit should the investment turn sour. There are still several risks, making it particularly important to adhere to our recommended portfolio limit of 2%. The stock is up 46% since 25 Jul 14 (Hold – $1.285). HOLD

Note: We're selling half our Acrux position, 3,125 shares, from the model Growth Portfolio at $1.87, for a total consideration of $5,844.

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