Finally, a pertinent question! I have been invested in this stock longer than most and have followed its progress closely. While my confidence in the management team is waning, I am focusing on the verifiable information reported through official channels, excluding speculation. Here is my current assessment of this stock.
Spenda is experiencing significant volatility and has shown a varied performance over recent periods. The company’s current share price is around AUD 0.007 to 0.012, reflecting recent fluctuations. Spenda’s stock price has experienced considerable volatility, with an average weekly movement of about 17%, higher than most Australian stocks. Over the past year, SPX has underperformed significantly, with a 46.2% decline, compared to the 33% gain in the Australian IT industry and an 8.7% increase in the broader Australian market.
Financial Performance and Current Situation Spenda's recent financial reports indicate ongoing losses, with the latest full-year earnings showing a loss per share of AU$0.016 in 2022, up from a loss of AU$0.006 in 2021. The company's financial metrics reveal significant challenges, including a net income of -$11.44 million, a negative return on equity of -31.24%, and a return on assets of -13.53%.
Strategic Initiatives and Partnerships Despite the financial hurdles, Spenda has been actively pursuing growth through strategic partnerships and business expansions. The company has entered into an e-commerce partnership with Capricorn and has been expanding its relationships in this sector. Additionally, Spenda has been focusing on enhancing its business payment services, which aims to streamline and expand its payment processing capabilities.
Forecasts and Growth Potential Forecasts suggest that Spenda could see revenue growth in the coming years, with projections of AU$22 million by 2025 and AU$42 million by 2026. These estimates indicate optimism about the company's ability to scale its operations and improve its financial health. However, it is important to note that these forecasts are based on successful execution of its strategic initiatives (scary thought) and market conditions (something that has impacted us significantly due to Covid).
Market Position
Spenda's market capitalisation stands at approximately $30 million, with its share price relatively stable around $0.007. The company's efforts to raise capital, including a successful $3.9 million placement due to robust demand, highlight investor interest and confidence in its growth strategy.
My Conclusion While Spenda faces significant financial challenges, its strategic partnerships and growth initiatives offer potential for improvement. Investors should watch for further developments in its business expansion and financial performance to gauge its long-term viability and growth prospects. Potential is all it has at present, which is sad to say. The critical question everyone should be asking is whether the company can realise this potential. This is what requires closer examination and scrutiny.
SPX Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
(20min delay)