I wanted to buy if it broke the last $1.30 high but was too slow to move and when it hit $1.60 i thought bugger it ill just let what i have ride.
However I pondered for a couple of hours yesterday arvo and thought na its still way undervalued so bought up fairly big (for me) at $1.50 when it pulled back.
My thinking was around the downside risk and losing money on the $1.50 buy and went something like this:
- Strong balance sheet thanks to the options being exercised
- Directors all put in substantial money by exercising their options and now have big skin in the game via substantial (5%+) holdings
- The major ATM contracts go out to 2029 and 2031 so income is secure for the medium term
So I was like na the downside risk is small so its okay to have a decent punt here and top up.
Then of course the upside potential is very strong as any day now the white label license could be announced or new ATM contract could be announced or the run rate of new merchants added to the FINDI-pay platform increases..
Then there is the whole booming Indian economy thing and FINDI is one of the only ASX listed pure plays in that market. So as word gets out and the market cap gets up over $100m more funds will be keen/able to buy in.
And lastly this is why I post that update valuation last night above just to clarify in my mind that $1.50 was not crazy stupid buying.