Shares of venture capital firm Tern PLC (LON: TERN) surged 8% in an attempt to break above the recent resistance level but encountered intense selling pressure at the level forcing the price lower.
The company has a unique business model. It invests exclusively in startups within the Internet of Things (IoT) segment and recently reported a full-year pretax profit of £800,000 compared to 2019’s £800,000 loss.
Tern has invested in companies such as; Device Authority, a leader in Identity and Access Management (IAM) for the Internet of Things (IoT) and Blockchain; FundamentalVR, which delivers VR haptic ‘flight simulators' for surgery; and InVMA, an experienced IoT and Industry 4.0 System Integrator and Value Added Reseller, among others.
The company is well-positioned to benefit from the projected growth of the IoT sector over the next few years, driven by the rollout of 5G networks that can support fast communications between IoT devices and human beings.
Tern is constantly looking for new companies to invest in, which will fuel its future growth while mentoring and providing additional resources to its current investees to achieve their growth objectives.
A positive announcement could fuel the next rally in Tern shares, pushing it above the 13p resistance level and the 14p level. However, we are likely to get more pushback from the bears for now until the shares build up enough momentum to break higher.*
*This is not investment advice.
Tern share price.
Tern shares edged 6.5% higher to trade at 12.78p, having risen from Tuesday’s closing price of 12p.
Should you invest in Tern PLC shares?
Tern shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Tern shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies