Bigtincan Holdings Limited (ASX: BTH) is a software solutions provider to enterprises across various sectors like Technology, Energy, Manufacturing, Retail sector, etc. The company is primarily focused on providing sales and marketing solutions through its proprietary Sales enablement Automation Platform that is used for customer engagement, sales content management, dynamic reporting, adaptive onboarding & learning solutions, sales and marketing alignment, etc.
On the technical front, the stock has been in a continuous rise since the beginning of the year. In fact, the rally has been so sharp that the price has more than doubled from the bottom of this rally. Let’s look at the technical structure of the stock to understand this rise better.
On 2nd February 2018, the stock touched its then all-time high of A$0.525 (as of 2nd February 2018) after a sharp rally from the low of A$0.170 in September 2017 which more than tripled the price in a matter of 4-5 months. After this rally, the potential of the stock to surge sharply in a short period of time was recognised by the investors. But finally, the rally came to an end after posting a high of A$0.525 in February 2018.
After this all-time high the stock turned its course of direction and gradually started to undergo correction which was not at all as sharp as the prior rally. This correction lasted for almost a year, and the stock kept on declining with every rise being sold off by the investors.
In mid-December 2018 the stock accelerated its downside momentum and started to fall sharply, until on 27th December 2018 when it made a low of A$0.245 without any hope of a rally. But as some of the best investors in the world suggest buying when the crowd is willing to sell. The low of A$0.245 was the final bottom for the stock as it soon turned out in the succeeding rally. After touching this lowest level in 52 weeks, the stock started to rise again and within a few days rose to the high of A$0.345 on 15th January 2019. The trend was still negative as every rally had been sold off for a year.
But this time something was coming up from the company for the investors that would end the current downtrend and take the stock to a new all-time high with a bang. On 21st February 2019, the company announced its FY19 results which surprised the investors, as it was very positive on almost all fronts. The Revenue was up by 56% to A$9.43 million, Gross margin was up by 4% and stood at 88%, Operation expenses increased by 24% to $11.1 million.
Apart from the financial numbers, the underlying business also grew on a fundamental basis. The Company extended channel development activities globally, created new lead generation programs and established SDR team, completed Zunos and FatStax acquisitions, increased its partnership to 28 global partners and increased customer base to 400+ across 3 continents out of which some of them are prestigious Fortune 100/500 customers.
This kind of result was not expected by the market, and this surprise led the stock price to surge by more than 13% in a single trading session on the result day, 21st Feb 2019. The rise was so qualitative and not just a temporary reaction from the market that since that day the stock turned positive and never turned back to that day’s low, A$0.340. In fact, the stock rallied on to make its new all-time high on 2nd April 2019 at A$0.565 which was again succeeded the next day a new high of A$0.570 got posted on the ASX (as of 12th April 2019). Currently the stock is trading around its all-time high.
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