Thoughts on the recent surge?, page-4

The share price has been on a steady rise from the start of the new financial year. Typical selloff before the new new-financial year and then re-buying occurring after the new year. The Fib retracement levels have been providing support and resistance along the way. The SP was stuck for a while there when trying to break through the 38.2 retracement, but once it got through that it continued to power on to the next level.

The webinar was towards the start of the financial year and is worth a listen. This provided a great insight into what the company is up to. Which included entering new parts of Europe. They also eluded to closing a significant contract with another Australian energy provider at some point in the new year.

Webinar is here:
https://us02web.zoom.us/webinar/register/WN_tolIAGHZT1Svt0nyJKJ1iA

In my opinion the sharp drop in share price from mid February to the end of mach was almost entirely COVID-19 panic driven share selling. After-all BID is a small cap stock and therefore at the more speculative end of the 'cap' spectrum. With money re-entering the market I think that people are looking for the right stocks that represent value and growth. It's probably not the only reason people are buying it at the moment, but for me BID ticks a lot of boxes including:

• It's business model is COVID-19 defensive (who doesn't want a cheaper energy)
• It has great management (and a new board member that's ex-Afterpay - cool!)
• BID is a leader in it's niche field (robotic bill parsing with AI)
• It's constantly closing new sales (and not even bragging about it)
• It's making money and moving towards being cashflow positive
• AND importantly, the share price was smashed because of the irrational March COVID selling, but the fundamentals remain the same (better actually)

We'll no doubt move with the market, but personally I wouldn't be surprised to see BID return to pre-COVID share price level over the next 3-9 months.

See my previous post from a while ago (pre new financial year) about price targets (~$1.40), which is approximately a 100% retrace from pre-COVID. If we keep closing new sales and expanding, no doubt the price target will be pushed up:
https://hotcopper.com.au/threads/bid-price-targets.5427177/?post_id=44997945