I have always believed that Imagination Technologies (LSE:IMG) is a good company. And you have to pay for quality. But you can overpay for quality and right now that is what investors in this stock are being asked to do. The company issued a detailed trading statement on 12 March which should not have provided ammunition for the bulls but the shares are now trading higher than a few weeks ago at 552p. Shorting a FTSE 250 stock right now is a risky business. Money is flowing into the second liners (from bonds) and this pushes valuations to ever more “generous” levels. And so I fully admit to calling this tech stock wrong (short term) as a sell on February 5th at 523p.
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