Sometimes the markets can get too negative and this is when we need that eagle eye to identify opportunities.
I believe the market has slammed Appen (APX) far too hard
APX
- is now 63% below its all time high of $43+ on 26 Aug 20
- has now retraced 37% lower since 16 Feb 21 , the start of its recent downturn
- significantly is 6.3% lower than its March lows
So, I get it that market participants are concerned about tech downdraft due to higher bond yields, which may come to pass. However with its share price being 6.3% lower than the COVID March lows while guidance is suggesting an 18-28% EBITDA growth going forwards, the risk-reward at the current price is actually rather attractive.
APX is a fundamental tech in the right space- AI , a $2B company that is proven , compare that against BRN at $800+ market cap, you can clearly see the valuation of APX is cheap.
I am onboard APX this morning, a clear indication that I would be more selective and be scouting for better value in the upper end of town market.
