Late and continued strength in Blinkx + 25% in 4 trading days

Blinkx – the online video search company has quietly put on almost 25% in just 4 trading days after being shaken down to the early 40’s post the 10 April trading update that revealed slowing growth – contrary to analyst expectations.

This type of price action, going against the fundamentals, is always interesting to us as traders and could be a precursor to some type of corporate activity. All the more intriguing given that asset managers FMR & Black Rock have both been reducing in recent weeks.The stock has obviously been finding a home somewhere…

With the company presenting at the Digital Content NewFronts exhibition in New York during recent days, an increased amount of awareness for the company and positive momentum for on-line video could be the culprit for the price rise of course. Either way, the price action closing back over 50p for 3 consecutive days is an encouraging sign to the bulls – I’m tempted to join them.