Shares in Advanced Power Components have moved up 150% since our 'Buy' recommendation in January, reflecting the group's stronger position after it sold its loss-making broadband telecommunications equipment subsidiary to US firm BelFuse, at a £300,000 surplus to net asset value. The result of this and a £168,000 loss for the continuing businesses in the interim period, left the company with £2.4m of cash and £3.2m of tangible net assets at the end of February, a strong financial position with which to expand its operations in electronic component distribution and contract manufacturing. These are as yet small, though there is undoubted potential for profitable growth and the board expresses 'renewed optimism'. If APC moves into profit soon, the shares will look cheap at the current price. However, investors that bought the shares close to our recommendation price should reduce their exposure while so far ahead, perhaps retaining a small holding for the potential upside.