Seems like McDonald’s didn’t keen to the new merged company as well, they did not attend to recent cap raise, their share percentage in plexure dropped from 9.9% to 4.65%
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Seems like McDonald’s didn’t keen to the new merged company as well, they did not attend to recent cap raise, their share percentage in plexure dropped from 9.9% to 4.65%
Thing about these forums is there will always be those who see opportunity where those who see otherwise. When Covid hit and the markets tanked PX1 SP crashed down (with all other stocks) and found a key support level about where it is now. The fear that March 2020 bought to the markets forced stocks down to their lowest levels and have since across the board bounced back up. With the recent drop in PX1 SP now hitting these pandemic lows there is a reason for argument that this will be at the key support level and looks to possibly be forming a low end trough as we speak. If it didn't fall past this point when the world was going crazy and markets tanking due to China/Covid onset scare and first lockdowns, then it seems unlikely what's going on now will push it lower than that!
Still feel will see a rally up to 0.60 task acquisition deal price to follow. Don't have the crystal ball for the timing exactly yet or what the key catalyst will be. Maybe Feb/March, time for Task to show some directional improvements. Combined with slow opening up of NZ from our tight locked boarders. General positivity Feb/March would be where I would look to.
I wouldn't sell for a loss just yet Tango. A steady hand might actually see a profit turned rather than realising any loss. That is unless you need the funds of course. The downside is being forced to sell at a low level like where it is now. Hopefully those funds aren't 'needed' right now and can just check back in a couple of months for a rally.
The only real substantial loss I have realised was with NZR. Right when closure of Marsden was the fear. Investors sold down hard on the fear. All the negative news. " Theme was SP won't come back at all...etc". Stupidly I bought into the fear, sold a hefty loss. Now the SP has recovered substantially and would be sitting with a handsome profit if I had not sold out. Live and learn from our mistakes and experience on seeing how human traits seem to play out with stocks.
Put it this way, if only about 20 sellers were to pull their current sell orders off the market the SP would likely then rally and instantly be sitting 20% higher in the 0.50's. That's all it takes. It's only about $150,000 spread over 20 sellers, which is not much in the reality of trading shares. When you look at it like that it makes more sense how PX1 has taken some volatile moves of 15-20% recently. Guess that's how Reddit drives some of it's share movements. They have a group of traders that basically swing the market in a certain direction, all jump on board and drive a share price in a direction. Investing doesn't really seem to be entirely investing in the actual company in relatively low liquidity stocks sometimes. Anyway all just food for thought. Everyone will have their own opinion. I would like to give a chance to see what Tasks customers and new customer base provides. Will be interesting in 6 months time to compare the SP to the lows where it is sitting today at 0.40, only then will anyone be able to give a definitive answer to if this was a bargain time to take advantage of.
Any large sellers seem to have dried up now. If look at the last 5 days trading volumes and where the 0.415 level is finding resilience and has stabilised.
i got info from https://simplywall.st/stocks/nz/soft...e-group-shares
In the shareholders meeting, the management did mentioned that they are talking to Maccas in regards with their revenue. Maybe Plexure can finally go with other fast food chain companies? That would explain the reduction in share percentage
At least 0.4 level has found support. Anything on the radar coming up that might be a driving factor for any next bit of a rally that anyone knows of?
For existing contracts it may increase revenue - unless people are in lockdown and not allowed out to pick up takeaways.
Plexure still like to have face to face meetings to close deals and TASK said they have been adversely affected by worldwide equipment shortages and shipping delays. The shipping costs and delays were starting to ease but most likely that’s not going to be the case with all this panic and closing borders
Task has over 50 international brands and is positioned well in this Covid world with it's management platforms, point of sales, online ordering, mobile apps on a global and scalable technology stack. The benefits of this are yet to be realised by Plexure, the stock has been pretty beat up recently, probably overlooking the benefits of this acquisition yet to come. The world is slowly learning as a society we need to do the best we can to live with Covid (as we did with Influenza), while realising 2 years in we need to allow operations to resume some normality. While doing the best we can with Vaccination continued development, modification and administrations. There will be new strains every season, but that is not something to freak out over, life will go on.
Would be good if the sticky small gain traders at 0.41 cleared out the way or just increased their sells then the SP looks like it could naturally rally back up to 0.48 resistance level. Always have a few that get in the way and scare potential buyers off ;)
It would be good if the sticky small gain traders cleared out the way at 0.41 (or increased their sells at least), then the SP could naturally trend back up to high 0.4's at least. 0.48 next resistance point.
I never understand why people think that traders behaviour determines the value of a share. Longterm it is the performance of the company you need to look for and short term perhaps a good story. Not saying that the Plexure story was ever good, but whatever it is even a good story lasts only that long.
Lets face it - the only thing Plexure / Task needs to do is to deliver in the years to come a healthy revenue CAGR coupled with positive earnings.
As soon as they do this, the share price will magically increase.
So far however they delivered only meagre (for a growth company) revenue growth coupled with patchy (and growing again) losses and regular capital rises. Not good enough.
Hope is not a good investment strategy.