1. There has been consistent selling pressure by a large investor over the past few month who seems to have been intent on dumping all of his holding. It appears that, until recently, only retail investors have been picking up his stock ( small parcels ). This may have been completed , last Thursday, with an aftermarket transfer of 7.6 Million shares to a large institutional investor. If that is the case, the movement in FLN will be driven by retail investors now so, hopefully, will grind higher like FVRR and UPWK.
2. The quarterly reports, although showing improvement in revenue, have not delivered the revenue growth and, hence, profitability expected by the market. This months report is expected to show significant improvement due to Covid 19 business growth for Freelancer and market growth for Escrow as shown by the Ebay Motors announcement.
Either way, the business dynamics for this sector are compelling and this has to flow through to FLN's business in coming months and years. There is good reason to be optimistic in my view and patient investors will be richly rewarded like Afterpay, REA, Carsales and other online market place companies.
FLN Price at posting:
65.0¢ Sentiment: Hold Disclosure: Held
