I bought an under valued stock a couple months ago that saw a nearly 50% drop in price over FCC issues. They just reported better than expected earning and settlement with the FCC which has caused the stock to jump nearly 40% this morning since I purchase it in august. I originally bought it with holding it for a year or longer in mind. Would it be prudent to sell it and cash in the 40% rise in 2 months, or continue to hold it for the long-term?
Did you buy near the bottom? Suppose you did then the price is still 16% below. 50% fall and then 40% increase leaves a 16% gap.
So there could still be upside. However, it appears that you are talking about a small-cap that is volatile. I wouldn't hold it. I would take the money and invest elsewhere.
If you have a lot of shares and brokerage is less then sell 60% now and the remaining 40% on either 10-15% jump in price or if it falls by 5% from now. Too risky to hold longer-term.