As usual, my opinion on the matter.
*begin the sledging*
Now what I'm trying to figure out if there will be
US roadshow information in the upcoming report next week. Anything of real sustenance that can provide support to the current, high SP. The last report was so recent I don't think there will be any new financial information in this report that we don't already know. If that's the case I don't expect the report to substantially move the share price, if at all.
The reason is - the SP rallied on release of the previous update to $7.36, meaning that this is the price the market gives Zip for the data held within the release. Then hype took over, off the back of the US roadshow rumours in early Feb about additional investors and a US listing and shot it up to $14.50.
So if there's no news to support the US roadshow hype -
why wouldn't the SP retreat back to $7.50ish, as that was the last known position of truth?? However, the US roadshow will provide some additional SP buoyancy anyway which is why I want to recent gap to be closed prior to next week's report for me to think about taking another dip.
Let's see what happens next week. Current target buy is $8.91 - $8.72 but, it depends on when/how this gap is closed. Maybe $8.50 is still the go. Depends on the macros (Nasdaq) as we approach the price.
Patience is key.
The AFR article, "Zip Co goes shopping for US investors, mulls second listing" Feb 7th 2021, stated "It is understood Zip is considering issuing American Depositary Receipts that would mirror shares in the company, trade in the US and give the company greater access to US capital markets.
The ADR deliberations are said to be at an early stage, and come as brokers run around pitching such secondary listings to a bunch of listed Australian technology plays that they think could attract US investor interest."
So, does anyone have a known timeline of ADR deliberations for other ASX companies that have listed in the US?? This would be good to know to apply to Zip and predict an update date.
(20min delay)