Resistance vs Momentum Splitit has shined bright this week, with double digit gains daily and a whopping 14 million dollars in shares exchanged by 2pm Tuesday 29 October following the release of the companies quarterly statement and a brand new investor presentation.
These releases coincide with the AGM being held in Sydney, Australia tomorrow evening, whilst the statements did not necessarily warrant such price action witnessed today, they were far from negative, with most metrics increasing two-fold over prior quarters.
Splitit has also silently avoided regulatory scrutiny over the last few weeks which saw rivals Afterpay and Zip shred hundreds of millions of dollars from their market caps, its clear that some of this free capital has entered less risky BNPL schemes like splitit, which instead of issuing credit, directly funds merchants for transactions.
Might see some consolidation back to 0.95, Expecting a move to 1.00 at the least.
Still a value buy @ 1.05-1.15 AUD
Morningstar fair value = 1.70 AUD
STTTF trade ideas
it is a trap for who dare to plunge.It could be either ways break out or break down, follow price closely before put your own money at risk.
BNPL underdog, paper thin book and a bullish pendant Splitit has come quite far since its explosive IPO earlier last year and its rocketing movements to $2 per share, the BNPL sector overall has seen a flurry of demand across major markets, partially due to a global lack of comparative salary growth, increased debts and easing credit regulations.
Recently major BNPL creditors like Afterpay and Z1P have come under minor scrutiny from regulatory bodies and justly; investors have responded by seeking diversification of their BNPL holdings as we can clearly see from the inverse stock price correlation between Afterpay, Z1P and the new kid on the block (SPT).
Further we can see a bullish pennant forming, a presumptive inverse H&S for the days close and a paper thin book to re-test 0.92 and rally to 0.95.
Happy Trading.
SPT - Technical analysisShare prices bounced back at 0.400 and made its way to 0.615 with higher highs in two-hour price chart but failed to break through the resistance trend line.
Share prices pulled back to its previous support at 0.485 and created an uptrend channel. Share prices also managed to regroup and push through the resistance trend line with supporting volume.
Share prices closed the last session at exact 0.615 resistance, up 13.76% with high volume. Share prices need to break and remain above 0.615 to continue to its estimated target at 0.750.
A Critical resistance price level is estimated at 0.485. Share prices could head down to 0.400 if it fails to hold at 0.485.
SPLITIT a RUSH for FINTECH HypeSince its IPO at approx 30 cents this stock has shot through the roof by some 400%. Investors are piling in on the fintech boom that we have seen over recent times, lead by Fintech darling Afterpay. Splitit is extremely similar to Afterpay with, which makes me caution its long term viability given it does not have first mover advantage in Australia.
Splitit is an extremely stock in the long term, however with hype around fintechs we could see its price skyrocket alot more in coming days. Investors will be trading on its growth story more so its market acceptance or profitability in the short term.
Highlights
• 380 Active Merchants operating in 27 countries around the world
• Splitit transacted with 88,000 new shoppers last year, taking the Total Number of
Unique Shoppers to the end of 2018 to 118,000
• Underlying Merchant Transactions in Q4 CY18 up 269% year-on-year to $32M: a
record to date
• Total Merchant Fees received to the end of Q4 CY18: $1.45M
• Average Order Value per instalment plan in Q4 CY18: $1,050
• New Get Now, Pay Later solution secures first Active Merchant
Sector: Industrials
Industry: Business Support Services
Employees: ---
Splitit Payments Ltd is a holding company of the Splitit Group. The Company is a technology company providing cross-border credit card based installment solution to businesses and retailers. The Company provides a payment service that can be fully integrated into a merchant’s payment system. The Splitit Payment Platform operates as an intermediate technology layer between a merchant’s platform and its existing payment gateway, being an e-service that runs payment transactions for a merchant. Splitit operates within the payments framework which is established by banks, credit card providers (such as, Visa and Mastercard) and payment processors.
