You remember 5G Networks Limited [ASX:5GN], right?
Last year the 5GN share price rose over 300% from it’s January low to the July top.
Geeze…I hope you didn’t buy it at the top. After it peaked, the share price fell 60%.
It was a dramatic fall in price. But nothing unusual for a company like that.
I mean it only has a market cap of $64 million. It’s super small.
But here’s where it gets interesting…today, the share price is up 7%.
And so far the 5GN share price is up 37% this year. You may be wondering, is another rally coming?
Today, we’ll take a look…
Who is 5G Networks Limited [ASX:5GN]
5G Networks Limited (5GN) provides networking and managed cloud services.
The company owns its own fibre and wireless infrastructure.
5GN is a licensed telecommunications provider.
It has over 180 staff with offices in 12 locations.
On 12 February, 5GN entered into an agreement to acquire a private data centre in North Sydney.
The company will purchase this for $2 million and will pay with cash.
This data centre will boost 5GN ‘racks’ to over 720. And will help 5GN accelerate its wholesale plans.
It’s moves like this that will help 5GN attract and sign on new customers.
One which will add to the company’s partnerships with its already indirect partner, Servers Australia.
Apart from this partnership, 5GN will provide Servers Australia with data centre capacity.
In exchange, the two-year contract will see 5GN receive a minimum spend of $750,000.
For mega-companies, this is small change. But partners like this may be the first of many…
So what does all this mean?
Well, it could be signalling to another run in 5GN’s share price.
Watch the 5GN share price chart:
Of course, we won’t know for sure…
But maybe we can take our ques from the chart. Take a look below…
Source: Trading View
What you’re looking at above is the daily chart of 5GN.
To the left-hand side of the chart is the top in 5GN that happened in July 2019.
As you can see the market fell by 60% after it hit its head.
Right now, it looks as if 5GN may be gearing up for another run higher.
We don’t know that for sure. But the chart is creeping higher.
If you want to see how this all plays out you may want to stick 5GN on your watchlist.
As always, this is not a recommendation to buy or sell 5GN. It is an update only. I hope you found it useful.
Until next time,
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