A Look At Upward Momentum Of Nearmap, page-198

The accounting change doesn’t lower cash profits. But what it does do is lower NPAT margin and NPAT. Since some forecast the business on a profit basis, it will lower some targets. The other issue with today’s update is it’s a slight miss to what brokers were expecting. Also, the stock was way too overvalued above $4 to begin with. High 3s was also expensive. Way too many blind buyers on this stock pumping it past $4 that will now see this do nothing at best for a long time. Stock is well and truly in distribution. Closing at the lows is never a good sign as well. Still a great company that will do well longer term but don’t expect a bounce that is sustained. Could be dead cat bounces but stock won’t make new highs for more than a year in my view.