Opinions
Greg Newman
Abaxx Technologies
ABXX-NE
RISKY
Jan 04, 2024
Stock price when the opinion was issued
You might be interested:
ABXX trades on the NEO exchange, and our database supplier does not yet provide financial data or prices for the NEO exchange.
ABXX is an $800M market cap Canadian fintech name, which primarily operates the Abaxx Commodity Exchange and Clearinghouse in Singapore. Its revenue base is still small, and it operates at a loss, issuing shares to fund its operations, but it has some tailwinds from its exposure to the growing energy transition sector. Momentum has been great, but we would be cautious here given the small sales base, and dilution. We would like to see it grow its sales base.
Unlock Premium - Try 5i Free
Went to a roadshow, and was super-impressed with management and its vision. Lots of big investors behind it. Seems to be the real thing so far. But it's speculative when you have no earnings. Stock's caught a bid and has flown up to $30. He owns a little bit for suitable clients. Thinks it has further to go. Thinly traded.
Pre-earnings, highly speculative. However, he met with management, learned the story, and had a bit of a Shopify moment. Very skilled management. Good for the right type of client. Put it in a taxable account, where you can use any losses. Risk/reward has been working so far.