You ask some big questions
@patawalongaPlease don't think I would be so pompous to answer your questions like I am some sort of know-it-all expert because
I am not.
Just when you think you might have finally become a better than average stock picker, the ASX will always find away of humbling you, well it certainly has had a history of doing that to me
So, my answers are at best a guess, peppered with a decade plus years of investing experience on the ASX (not that means much lol) but I thought I would give my response some grounding.
I have lost and won hard earned money investing in individual stocks but I keep at it (especially in the microcap end) because some of the returns can be life changing and worth the effort and patience.
For what it's worth, I think Wrkr has all the hallmarks of previous good investments I have made and may well become one of my best, if things go according to plan.
Directors buying into the SPP.I think it was a great thing the directors continued to buy shares on market out of their own funds. That's true belief in the future of the company.
Don't forget Joe is not a director, so his uptake of $30k of shares in the SPP would not have required to be reported, but I am sure like Trent, he would have taken his full allocation.
Don't forget, Paul backed the company to the tune of $500k (of his own money) in the capital note raise. Those monies were recently converted to shares and here he is buying another $30k's worth. I agree with
@edgck, it is a good sign when directors/CEO's are buying on market. They have a better seat of what is coming into the future than we do, and it is obvious they don't want to miss out on what is coming.
Capital raiseManagement went all out with the capital raise. They raised the maximum they could, then pushed it a little bit further with the SPP.
They just have to execute now, and for what its worth, I believe they will onboard all of MUFG's clients with the only outlier being HESTA.
With 1.7B SOI, I think Wrkr will not raise funds again. This was the raise to take the business to a cash flow positive position and embed a recurring SaaS income stream for the next 10 years plus.
Top two shareholdersAfter the raise, they will be Intuitional funds. Whether they bought directly or are acting as nominees for other investors. The top 20 in the next half year's report will be very interesting. This company is now more answerable to Insto investors than retail investors.
Who's selling and buyingNo insto would buy into a company this small, unless they thought it had a very bright future and there was an exit. They have done their homework and concluded this company a worthwhile investment. That is a big tick for me, and I would say because the raise was over subscribed, that the instos are still buying up as they deem the shares will be worth much much more in 18mths time.
The business model, market timing, platform, potential clients and relationship with MUFG is a tidy investment package.
The selling I would say is coming from stale investors who do not believe in the future of the business and some that will just be taking some profit in case the SP retreats after all these years. It has been a long time since they have seen this volume of shares traded consistently and they are simply selling into it. I think they will kick themselves in 12mths time but that's just my humble opinion.
Also, there will probably be some sophisticated investors that are now aware of Wrkr through their relationships with the insto's who have probably started to take a position.
The share register is changing as is the SP, and this has only occurred because of the efforts of Trent knocking on insto doors and raising the needed capital. Bloody fantastic effort I say
Would you buy moreI have after the SPP and I may still buy more in the not to distant future. I am aware that this stock is tightly held. How long "loose hands" will be selling I don't know, but at some point I expect this to dry up and you will not be able to build a meaningfully parcel without paying a higher price than today. New investors may also have this understanding and this could be one of the reasons driving the share price/volume at this time.
My SP target for December this year was 0.08c on the back of news. If this SP action keeps up, it would seem a certainty.
Ian
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