in Uncategorized

SpiffX – some observations

Swedish betting solutions provider SpiffX has had a rough ride on the stock market in recent months. Over the last 6 months its share is down some 40%. The biggest issue so far, in our view, is the lack of breakthrough partnerships and the lack of newsflow in general which is never a good thing for a start-up company. However, looking at the underlying development over recent quarters we can make some interesting observations:

spiffx-usersAs shown in the graph above, the number of users has been increasing steadily. Up until the end of Q2 2016, we saw a corresponding increase in the company’s market cap as well. Since July, that correlation seems to have broken. We are still awaiting the company’s official Q3 numbers (due November 19th), so it remains to be seen how many users SpiffX has had exactly at the end of Q3.

spiffx-mkt-cap-per-userWith a market cap of around SEK 28m today, the stock market values each of SpiffX’s customers at around SEK 1000, which we believe seems rather low.

Obviously, the biggest share price driver would be new partnerships and concrete news around the company’s Take5-product but we do also believe that a confirmation of continued user growth in connection with the upcoming Q3 report should be acknowledged by the market.

Nordic Investor

Related Posts

What is your opinion? Let us know