Sharechat Logo

SLI Systems shares sink to record low in run-up to earnings season

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. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Transpower sees no risk to credit metrics from incentive change
NZ dollar rises, an outlier amid rising Gulf tensions
Craigmore spends $32M to expand Kerikeri kiwifruit crop by 'more than a third'
CentrePort eyes further hub expansion
South Port beats guidance, earnings in line with 2018 record
Plexure sees revenue growth from White Castle deal
22nd July 2019 Morning Report
NZ dollar treading water as markets focus on Iran
MARKET CLOSE: NZ shares extend gain as passive funds bolster prices; Tourism Holdings climbs
NZ dollar headed for 1.3% weekly gain on expectations of a Fed rate cut

IRG See IRG research reports