Sometimes you catch the rising tide. That sums up my recommendation of financial software firm First Derivatives in mid-December. The shares were then 172.5p. They are now 337.5p following a trading update alerting the market to the prospect of profits ‘materially ahead’ of expectations. There have been plenty of new customers and increased take-up of the financial systems the company distributes for Kx Systems. With the Markets in Financial Instruments Directive due to come into force later this year, First Derivatives is in the right place at the right time. Whether it will be able to maintain the momentum once MiFID is in place and brokers’ IT spending reverts to more normal levels is another matter; but, for now, you should go on riding the wave.

First Derivatives	AIM	£19.55m	142.50p	0.00p
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Other company articles:
First Derivatives: take your profit			05/10/2007
First Derivatives going well			23/08/2007
First Derivatives wobbles – then recovers			11/05/2007
First Derivatives jumps on trading statement			09/02/2007
‘Strong momentum’ at First Derivatives			08/02/2007