...in just one month between end of July to last Friday, APX had a stellar +360% run with some market participants thinking they bought the bottom and with the stock price trading at a small fraction relative to its all time high, it has to be the bargain of the century.
...you'd notice too that the stock doubled in just a fortnight in March to finally crater.
...it is not uncommon for stocks that fell big time to periodically make that 'promising' rally on speculative fervour. APX after all used to be our ASX proxy for tech exuberance, and may have been so despite falling from grace.
...however, with the stock trading at market cap of about $240mil and with its bottom line just turning around this reported quarter, the jury remains out that it can find growth enough to close its Google contract loss of $80mil.
...watch out for the inevitable X-tree unfolding following today's -10% loss. A stock that is a fallen angel gone into dog territory is not going to be an overnight Lazarus sensation. It is just Gambling.
Embattled data services company Appen has narrowed its losses for the first six months of the year as it attempts to replace the $US80 million contract that Google abruptly terminated in January.
For the half ended June 30, Appen’s revenue fell 18.4 per cent to $113.4 million, excluding the loss of the Google contract, revenue fell 1.5 per cent.
In an effort to adapt to its shrinking revenue, Appen implemented a $13.5 million cost-cutting program in the half which narrowed its underlying earnings loss to $2.6 million, an improvement of $15.5 million on the prior corresponding period.
