Bailador Technology Investments Limited (BTI)

BTI is an investment company with a portfolio of assets in the information technology and media sectors. It pursues investments in expansionary-stage companies with a special focus on e-commerce, subscription-based internet business, online marketplace, online education, and telecommunication applications. BTI was listed on ASX in November 2014. Its market capitalization as of 28th October 2021 stood at AUD 241.79 million.

Financial and Operational Updates: As announced on 17th August 2021, BTI clocked 161% growth in cash realizations in FY21 to reach $31.0 million. Net profit surged $31.7 million to settle at $27.6 million over the prior year. During the year, BTI realized investments in three companies – DocsCorp, Lendi, and Viostrem. Its portfolio company, Stackla merged with Nosto. It had announced a special dividend of 1.4 cps, representing a yield of 1.0% on the closing price of BTI shares on August 16, 2021. The company is expecting significant investments and profitable realization in FY22. It had entered FY22 with a cash balance of over $40 million. Recently, it had made a follow-on investment to the tune of $2.0 million in its portfolio company, InstantScripts. BTI is also looking to exit its investments in SiteMinder through the sale of equity interest in the proposed IPO which is expected to be completed in November 2021.

Technical Analysis: On the daily chart, BTI prices are trading in a rising channel pattern, and currently, prices are hovering around the upper band of the pattern. Moreover, the momentum oscillator RSI (14-period) is trading in an overbought zone at (~72.04 level) and formed a negative divergence, which might indicate the possibility of a downside correction from the higher levels. An important support level for the stock is placed at AUD 1.89, while the key resistance level is placed at AUD 1.67.

The stock made a rally with returns of ~74.75% in the past one year. It is trading higher than the average of 52-week low and high price of $0.990 and $1.820, respectively. Considering the improved profitability, exit plans in its portfolio companies, a spike in share price, current trading levels, and technical indicators, we suggest investors to book profit and give a “Sell” rating on the stock. The stock was analysed as per the current market price of AUD 1.810 per share as of 28^th October 2021, 3.32 PM (GMT+10), Sydney, Eastern Australia.

Daily Technical Chart – BTI

Source: REFINITIV

Note: The purple color line in the chart shows RSI (14-period). 

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest. 

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