I haven't done a chart of ST1 in months, so let's get back in the saddle.
After a few weeks of rangebound consolidation, recent price action has led to something of a cup and handle - or at least a cup. Friday's candle might be the start of a handle, but it's early days yet. In any case, the last two days saw a certain amount of profit taking, with a spike in daily volume:
For the first time in a few months, ST1 broke through its 50MA (yellow line) and spiked briefly to test its 200MA (blue line) on Thursday. The 200MA test was rejected quickly, with the prominent lower wick suggesting heavy selling pressure. So that was either profit-taking, or a fire sale by those who held since the 20s, noticed the spike, and decided to cash out for a reduced loss:
But for those more patient (and still holding), here were some things I noted in Friday's webinar - this assumes I took accurate notes:
- Spirit welcomed 7 new institutional investors in recent times
- Recurring revenue was up 92%
- By employing 36-month service contracts, it gives them 3 years to have conversations with CIOs on cross-selling opportunities (hopefully reducing churn risk)
- Their first national marketing campaign (on selected TV stations) will start in May
- Some of Trident's customers have been on board for 20 years, and now they're "wanting one partner to look after their whole journey"
- Following previous acquisitions, Spirit had up to 32 different corporate systems (e.g. billing). They've consolidated them into 8
- Institutional investors have been asking the CEO "when will be the next acquisition?"
- In the current era of COVID-19, there has been no material impacts on receivables or bad debts
- There has been a "trimming" of staff numbers in sales and payroll
