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APX - Appen Limited

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Oh dear, it 'appened again.
Guidance in and it's not looking good for FY23, thus the market punished it brutally.
Lots of traders licking their wounds tonight.

 
galumay said:
LOL! Heaven forbid anyone takes any notice of my waffle. The world is full of businesses I have been exactly wrong about. APX is probably another.
Click to expand...

Might have got this one right though, hope no one here got caught with capital in this one.
 
Surprisingly low entitlement uptake by retail share holders. Currently trading >$3 with the offer priced at $1.85.


There was no option to buy more than the entitlement, unfortunately.
 
Sudden departure of their CFO is a red flag. Sold my entitlement shares and will monitor chart for another tradable setup.
If price falls <1.85 this company will be dead to me.
 
a view from around the traps.
.
When a stock plunges like AI technology group Appen did on Monday following its first-half results – down a painful 29 per cent in a day – we’d usually call that a surprise. But that’s not the case when it comes to Appen, which has seen 14 peak-to-trough falls of more than 20 per cent over the past five years, and five in the last 12 months alone.

The problem on Monday was guidance for the second half of the calendar year. While the market knew the six months to June 30 was going to be tough – revenue fell 24 per cent and the company’s net loss widened from $4 million to $34 million – consensus had been for revenue to rise by 16 per cent in the second half. But Appen now expects the second half will be in line with that tough first half.

There is deep irony that many of the AI models the world is getting excited about are trained on Appen’s data. But converting this new wave of AI interest to growth is proving difficult.
 

Still feels like I might have been more right than wrong about this one, 12 months hasn't changed my view.
 
Noted the recent price rally but saw the reporting date was near so I didn't touch it. Now, it's dead to me.
 
qldfrog said:
Let's keep an eye on this booming minnow...what are the odds of a capital raising within 30days?
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I think it took about 90 days from @qldfrog's post - Six months after raising $60M, APX are seeking $25M to fund working capital.

galumay said:
LOL! Heaven forbid anyone takes any notice of my waffle. The world is full of businesses I have been exactly wrong about. APX is probably another.
Click to expand...

Might have got this one right after all!
 
A classic example of my pet hate. In my past life I dealt with the real world away from ASX listed companies. If businesses were unable to make a profit over a reasonable period and further financing was not available then it would fold and a competitor would take that part of the market.
Here we have a company with all the hype and hyperbole once having a share price in the $40's consistently going to the market for more cash. OK if companies raise cash for expansion or other reasons where there will be a return on the bottom line from efficient use of that cash, however cases like we have here where there is a consistent raising of more and more cash to supplement on-going negative cash flow and pay off debt is not an efficient use of funds. Using the excuse of Covid costs are wearing a bit thin, especially seeing that the company admits to wasting money in the AI experiment.

What intrigues me is what institutional investors see as value in giving more money to companies such as APX for inefficient use of that cash which is in effect to keep it afloat only to make more losses. They must see something in this weekly chart that I don't.


 

 
verce said:
Anyone buying at the current discount today?
Click to expand...
I knew a guy who specialised in buying the duds but he wouldn't be buying yet.
He waited till there could be a complete company failure, and would be prepared to lose his capital.

I certainly would not start buying these. I think the odds of a win are terrible and further bad news is likely.
 
I looked at this stock last week and thought I should throw a chunk of money on it.
Lucky I didn't hey.

Too busy not trading.
Wish I was trading full time.

 
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