$69 postpage LB

Buddy Technologies Updates The Market On Trump Tax; Stock Trading Below 21 WMA

  • June 05, 2019 08:32 PM AEST
  • Team Kalkine
Buddy Technologies Updates The Market On Trump Tax; Stock Trading Below 21 WMA

Buddy Technologies Limited (ASX: BUD) is an ASX listed information technology company based in Australia. The company provides easy and affordable solutions for the customers to make their spaces smarter and their occupants more efficient and informed.

Gold MTF non-AMP

The company’s LIFX; smart lighting solution has already established a leading market position, and the products are sold in over 100 countries worldwide. The sales are being made directly and via distribution and sales partnerships with retailers like Amazon, Google, Apple etc.

The company has two main products in its portfolio;

  1. Buddy Ohm is an easy to use and cost-effective way for gauging the consumption of key resources. It is made up of Internet of Things (IoT) class hardware and has an engaging software. The real-time decision can be made through real-time data for activities like a tracker for buildings, building’s energy consumption etc.

It can benefit all the building types like commercial, retro/older and corporate and school campus.

  1. Buddy Cloud is an innovative and very powerful smart cities platform. A smart city uses technology, sensors, and data to improve and create existing and new services in order to better manage resources and run the city.

It can help business, governments and cities to collect and consolidate data, creating an open data platform.

Update on import tariff

On 5th June 2019, the company released its update on the US tariffs on the Chinese goods. It released details about its posture with respect to the government of the United States regarding elevated tariffs on a cross-section of Chinese-manufactured products imported into the US and specifically the Trump tariffs.

The US increased the standard import tariff from China to the US from 2.5% to a massive 12.5% in 2018 and now its 25% as of 10th May 2019. The United States has inched the tariff on $200 billion worth of Chinese goods, and China has retaliated further and raised the tariff on the U.S goods as well.

The team at LIFX were working very hard for the past months to reclassify the products under appropriate non-tariffed import codes. Finally, the company was able to import four shipments of LIFX’s products with the revised classification. The reclassification allowed the company to not to be subjected to either of the high tariffs of 25% or 10%.

These trade wars and negotiations are highly unpredictable and are going around for more than a year. Therefore, the tariffs may change at any time, or other development may unfold for which the company continues to monitor the situation and will make sure to follow the compliance.

New Security issue

On the same day (5th June 2019), the company also announced its new issue announcement for the additional securities. The company has planned to issue 1,634,809 fully paid ordinary shares and 5.7 million employee incentive performance rights.

The 5.7 million employee incentive performance rights would be issued free of cost and the 1,634,809 fully paid ordinary shares would also be issued free of cost on vesting and conversion of employee incentive performance rights

Best Buy update

Recently the company also expanded its presence across the US Best Buy stores, which is having more than 1000 stores. Best Buy is a multinational consumer retail chain headquartered in Minnesota, USA.

Best Buy had launched a spot for visibility for LIFX lights in the home theatre section across its stores, increasing the linear shelf space held by LIFX from 27.75 inches to 38.25 inches. The new visibility point displays a LIFX A19 light and the LIFX Z experience kit. Best Buy is the largest consumer electronics retail company in the world.

Funding for LIFX acquisition

On 23rd April 2019, the company updated the market regarding the financing arrangements for the acquisition of LIFX. It had signed an agreement with the largest independent working capital lender of Australia and New Zealand; Scottish Pacific for a total of A$20 million.

Technical Outlook

On the weekly chart, the stock has fallen a lot from December 2017 to the current date (5th June 2019). The fall can also be noticed by the falling moving average of 21-week (Purple).

As per the technical analysis school of thought, whenever the stock is trading above 21 weeks moving average, the trend is considered to be positive as the current expectation is more bullish than the average of the last 21 weeks. On the other hand, when the price is trading below the moving average, the trend is considered to be negative as the current expectation is more bearish than the average of the last 21 weeks.

Based on this, on the week ended 1st January 2018, a bearish signal came as the price dropped below its average. Since then the stock had never been able to trade above its moving average and continuously trended down.

Weekly price chart of Buddy Technologies (Source: Thomson Reuters)

During the correction, the stock also faced stiff resistance above the moving average (marked by red arrows), which kept the stock on the other side of the trend. This resistance and support by a moving average are called dynamic support and resistance because it keeps changing with passing time. They work well as a normal support and resistance levels as seen on the chart.

Currently, the stock is trading below its moving average, and until it starts to trade above it, the trend is deemed to be negative.

Stock Performance

The company has a market capitalisation of A$82.95 million, and the stock had touched a 52-week high and low of A$0.15 and A$0.043 respectively. The stock is up by 6.5% and trading at A$0.049 after making an intraday high of A$0.051 as on 5th June 2019 (AEST: 2:14 PM). The last one-year return of the stock is negative 58.1%, and the YTD return stands at negative 51.5%.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.



The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.


We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK