- [email protected] Capital (SYME) shares rallied 16.8% on H1 results.
- However, SYME shares later gave up most of their gains.
- So, should you buy SYME shares? Read on to find out.
The [email protected] Capital PLC (LON: SYME) share price rallied 16.8% after releasing its interim results for the six months ended 30 June 2022. Investors initially cheered the results despite SYME reporting an increase in its operating losses to £2.52 million compared to £1.46 million in a similar period last year.
The inventory monetisation company attributed the higher losses to an increase in the number of employees and a higher cost base created by the acquisition of TradeFlow Capital Management Pte. Limited in July 2021.
Also read: The 5 Best Growth Stocks To Watch In 2022.
SYME also noted that it had continued investing in its operations to satisfy the requirements of the inventory funders looking to use its platform. As a result, the company generated revenues worth £0.2 million from investment advisory services versus the £0.3 million from inventory monetisation services last year.
[email protected] Capital also noted that it had made significant progress on multiple operational KPIs, including achieving significant growth in the pipeline of warehoused goods to be monetised, which rose to £329.8 million as of 23 September 2022.
SYME further noted that the Assets Under Management (AUM), referred to the Funds advised by TradeFlow, had surged 75% in six months.
Alessandro Zamboni, [email protected] Capital’s CEO, said: “The Group’s focus so far this year has been on securing the first binding commitment to deploy our inaugural IM transaction, and it’s fair to say that the numbers don’t tell the full story.
The SYME board believes that the first IM transaction de-risks the investments made by our existing shareholder base, creates a clearer path to profitability, and advances our equity story, such that the door is now open for institutional investors to consider SYME as an attractive investment opportunity.
SYME shares had erased all their previous gains and traded in negative territory at writing. As a result, investors had second thoughts about the company, which translated into a decline.
So, should you buy SYME shares? The short answer is that SYME shares are attractive at current prices since they are trading above a crucial long-term support level, which will likely hold. I would buy them.
*This is not investment advice.
[email protected] Capital (SYME) share price chart.
The [email protected] Capital (SYME) share price rallied 16.78% to trade at 0.0849p, rising from Wednesday’s closing price of 0.0727p.