Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Gary Newman's share tip of the year Number 2 - Buy Distil

By Gary Newman

29 December 2015 06:43

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My first share tip for 2016 was a large FTSE250 oil and mining company, but my second one is at the other end of the shares scale and in a less volatile sector.

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Comments

Daniel Victor

30 December 2015, 04:33

Gary,I have held these for ages and have no plans to sell.However,they are speculative.In the short term,there is downside from dealing costs and market spread.In the medium to long term,if the Company fails to become profitable,the downside is of course 100%.Distil has been trying to become profitable for some time.
Gary Newman

30 December 2015, 04:54

Daniel,
Just seems to be heading in the right direction in terms of growth, although actually making a net profit has taken longer than i expected. It hasn’t been that long though since they switched from being a distributor to a manufacturer, and i do like Don Goulding’s record in this sector – although that company was obviously an awful lot bigger!
I think 2016 will give us a clearer indication of where this is heading and how it has performed in the overseas markets – just a pity that RedLeg has been delayed a bit in the US market, but was a technicality and I’d expect that to be licensed there soon.
Its one I don’t look at that often unless there is news, as am happy just to hold and see where it goes – not risking fortunes, as i never do on any small AIM company, but do see potential for a long term hold and to watch it grow if all goes to plan.