The Seven Ages of Nuix

After the recent roller coaster we’ve all been on I’ve put together the following wrap up as a lesson learnt.

The Seven Ages of Nuix

The First Age of Nuix (The Age of Humble Beginnings) : Nuix establishes itself and grows its client base under the wings of Mac Bank and operates nicely and quietly under the radar

The Second Age of Nuix (The Age of Dollar Signs): the insiders and the money men at Macquarie start seeing dollar signs - “we can float this bastard and make a killing” Plans are hatched.

The Third Age of Nuix (The Age of Staying out of Jail) : hype and marketing and staying just within the IPO rules as far as hyped up valuations. Owners want to maximise their windfall without going to jail - ‘you can’t spend it in there mate’ they say to each other in the boardroom -$5.31 float price set - borderline greedy.....but legal.

The Fourth Age of Nuix (The Age of the Retail Frenzy) - it floats and it flys ! So much hype/so much expectation- retail investors can’t get enough. Owners who sold into the float are saying “WTF - we left waaay too much on the table” Smart money is selling into the frenzy.

The Fifth Age of Nuix (The Age of Sobering Reality) - reality bites - first set of results fall short - WHAT!?- the script was quite clear - you were supposed to hit 15 bucks after smashing forecasts. Everyone shits themselves. Sold down from $9 to $6 but a few HC posters are already chest beating about catching the falling knife - they ‘got in’ at $6 and $6.50The

The Sixth Age of Nuix (The Age of Escalating Panic)- margin calls, panic and all sorts of other irrational behaviour - the sell off continues .....all the way down to $4.70 - ‘I’ll buy back in at $2.50’ say some. The smart money is quietly buying again in the high 4’s and low 5’s

The Seventh Age of Nuix (The Age of Returning Sanity) ‘hang on - this bastard’s got to be worth something’ Realisation that the float price probably wasn’t far off the mark in the first place. Share price bangs on 15% in a blink. Head back above water and keeps climbing. Finishes today at $5.57.

So there you have it. Here’s hoping the Eighth Age is at worst a consolidation in the mid to high 5’s ..... which still leaves us all a bit scorched....but hopefully the worst is behind us.