Ushio’s share price rose 49% from May 19 to July 2, from ¥1,423 to a 52-week high of ¥2,118. This reflected growing optimism over the resumption of movie theater operations in Europe and America as vaccination proceeded and pandemic-related restrictions were relaxed.
On June 29, management announced a doubling of FY Mar-22 net profit guidance, in large part due to greater than expected sales of light sources for cinema projectors and projection equipment.
But the rapid spread of the Delta Variant of COVID-19 has undermined this optimism and the shares have since dropped back to ¥1,997.
Take profits and wait until the impact of the current wave of infections is discounted.