Tuesday 11th July 2017
|Text too small?|
SLI Systems shares sank to a record low, extending this year's decline, as a dearth of news ahead of next month's earnings season has seen some investors exit the e-commerce software vendor.
The shares dropped 8 percent to 23 cents today and have fallen 49 percent so far this year making them the fifth-worst performer on the S&P/NZX All Index. The volume of trading was light at 103,244 shares, or 0.2 percent of shares on issue, in what's a relatively illiquid stock with a 90-day average volume of 37,546.
Christchurch-based SLI hasn't released a price-sensitive statement to the NZX since February when it reported a widening first-half loss and falling revenue after losing three major customers at the end of 2016 and contending with a strong currency eroding its export earnings.
SLI will report annual earnings next month, which Hamilton Hindin Greene director Grant Williamson expects will give investors a good idea on how well the software developer's new management has performed in getting the business back on track.
"Some investors have given up and are just deciding to sell. They could be fearful if cash burn is too great they'd be looking down the barrel of a capital raise," Williamson said. "There doesn't seem to be a lot of support for the stock at this stage. It needs some positive news."
SLI went public in 2013, selling shares at $1.50 apiece to raise $27 million in an initial public offering. Of that, $15 million was invested in developing the business and the remainder went to existing investors. At the time of the offer, SLI was valued at $87.1 million, although that's now shrunk to just $14.3 million.
No comments yet
Balanced consenting framework needed for renewables - Meridian
Lumpy imports drive bigger July trade deficit than expected
Freightways' net profit rises despite NZ slowdown
National floats company tax cut, recommits to higher pension age
Metlifecare lifts underlying annual net profit 4%
Chorus CEO McKenzie to leave this year as operating earnings decline as expected
Supreme Court to hold oral hearing on Synlait's Pokeno appeal
Meridian posts record profit on high production, prices
Intuit on track to overtake Xero outside the US
Fasten seatbelts for the Trump twitter-storm fallout