Don’t Bullshit the Market - that’s the lesson that’s hopefully been learnt by the NXL board and management in the last 6 months.
Diary of a Bullshitter
Oct/Nov 2020 - Prospectus valuations and forecasts maxxed to ensure a big takeup and a frenzied listing. IPO price set at $5.31
4 Dec 2020 - all goes to plan - oversubscribed and bursts onto the boards - north of $8 on day one.
Dec2020/Jan 2021- No announcements by board/management. They just let the shares run even though they must’ve known forecasts were looking increasingly stretched.FOMO really kicks in as shares go north of $11 in late January.
Early/mid Feb 2021 - Shares begin to ease off - still no official news for the market but maybe word is getting around .....back to $9
26 Feb 2021 (day)- company announcement ‘ aah about those prospectus forecasts ....we’re running a bit behind on them - sorry - but we’ll still meet them for the full year no problem’
Market doesn’t like it - was prepped for nothing but good news ....shares drop like a stone .....from $9 to $6 (33% in a single day)
26 Feb 2021 (evening) ....(management - behind closed doors) ......’Jesus - that reaction was a bit savage - imagine what the market will do when we fess up that we’re not gonna make full yr forecasts......we’d better shut the F up for a while.
Through March 2021 - Management- behind closed doors ‘We’re gonna have to come clean - we’re gonna miss FY by miles.....brace yourselves everyone’
21 April 2021 - company announcement ‘Aaah about those full year forecasts - whoops sorry - nowhere near it - a few typos in the prospectus......we don’t actually think we’re that good anymore - sorry’ ....sp tanks to $5
22-28 April 2021 - Unloved and distrusted - market continues to punish NXL - down into the mid 4’s
Today (April 29) - NXL gets a mighty one day kick in the gonads - just for good measure - and because is unloved and distrusted - and ...and just because..... down 7% in a day - below $4 for a bit.
Has it bottomed today - who knows?
A long road back for NXL.
Don’t Bullshit the Market.
NXL Price at posting:
$4.06 Sentiment: Hold Disclosure: Held
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