The GSTechnologies Ltd (LON: GST) share price fell 13.3% after announcing the appointment of a new auditor following the abrupt resignation of the company’s former auditor after a change of leadership.
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The fintech company appointed Shipleys LLP as its new auditor to replace Elderton Audit Pty Ltd, which resigned from the role on 2 December 2022, citing a change in strategy to focus on companies based in Australia.
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At the time, I pointed out that the former audit firm’s resignation had little to do with GSTechnologies. Elderton Audit Pty Ltd changed its strategy following the death of its Managing Director, Nicholas Hollens, earlier in the year.
However, the markets punished GSTechnologies for the abrupt resignation, with the sour sentiment extending to today despite the company appointing a new auditor. As a result, investor sentiment towards the fintech firm has soured significantly.
Still, the company is moving forward with plans to become a leading fintech player after a successful soft launch of its GS20 crypto asset exchange based in Lithuania. The platform will offer spot trading and over-the-counter (OTC) trading desk services for popular crypto assets, such as Ethereum, Bitcoin, USDT and other regulated stablecoins.
GS20 will offer its services to a select group of retail and institutional investors, including existing customers of its subsidiary, Angra. The fintech company is collecting feedback from the platform users to help improve its services before the official launch.
Therefore, despite the negative investor sentiment, GSTechnologies remains an interesting firm that could transform into a leading player in the fintech arena, including within the crypto and blockchain industry.
So, would I buy GST shares at current prices? The short answer is no. GST shares are still falling. I would wait for a reversal and a confirmation before buying.
*This is not investment advice.
The GSTechnologies (GST) share price.
The GSTechnologies (GST) share price fell 13.33% to trade at 0.52p, from Wednesday’s closing price of 0.60p.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.