Solid State (LON:SOLI) shareholders are no doubt pleased to see that the share price has bounced 31% in the last month alone, although it is still down 21% over the last quarter. The bad news is that even after that recovery shareholders are still underwater by about 6.9% for the full year.

All else being equal, a sharp share price increase should make a stock less attractive to potential investors. In the long term, share prices tend to follow earnings per share, but in the short term prices bounce around in response to short term factors (which are not always obvious). So some would prefer to hold off buying when there is a lot of optimism towards a stock. Perhaps the simplest way to get a