We are big fans of momentum, and will usually let things run. With a small company, two things come into play. One, as a company moves over $1B market cap, we notice more investors take interest and we are thus more inclined to let things run at that point. However, we remain aware of overall company size risk, and will trim into further gains. PNG is now close to $2B so has probably had the initial '$1B run' already. The momentum we think reflects the strong defense sector, infrastructure spending (new submarines in Canada), and the potential for new contracts and/or acquisitions after the company's financing. Supporting momenutm is a nice increase in trading volume, where it is now five million plus daily, up from one or two million. We would view this as very positive. Seeing the stock 'bounce' nicely after its declines is also a good sign overall.
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