Will be an interesting week ahead for QFX holders. Couple of things i'll be on the lookout for....
1. Will the volume of last week continue? A great week for QFX holders in regards to price and volume. Reached a peak (briefly) of 2.4c on Thursday and settled to end end the week at 2c bouncing slightly off Fridays lows at 1.9c. Was good to see it come off the low on Friday as some good money has been made since the Rights Issue was finalised a week earlier. Biggest day was 80m shares and Friday was still over 50m. 80m shares equates to 8% of the issued scrip so its a fair whack in a day.
2. Change in substantial holdings. We should see more in this space over the next week. Post Rights Issue, there has no doubt been changes to holdings (and maybe some new holders). Will be interested to see who ends up with what share after the raising. The placement approved at the AGM will see Gleneagles debt converted to equity but i dont think those shares will be issued for a few weeks yet.
3. Announcements The volume and SP rise are off the back of no fundamental change. One would assume something is happening... Somewhere! Likely to be new content or new strategic partnership (ISP, studio etc). The speeding ticket issued on Wednesday came with the expected response but that did nothing to dampen the price and volume with the SP up considerably on Friday. The Rights Issue money is in the bank so we'll se how quickly it can be put to use. Presumably, the company knows the cost of content so it may come sooner than expected. They'll also want a compelling reason for the large number of current triallists to stay on and also some good content for the key Xmas/summer season (this quarter is historically the strongest for customer acquisition).
So an exciting few weeks ahead for QFX holders. The company is in a much healthiernposition than this time last year so i'm looking forward to some big things in the busiest quarter of the year for QFX.
GLTA
QFX Price at posting:
2.0¢ Sentiment: Buy Disclosure: Held
