The Vita Group Limited Share Price is Up 14%. Why? (ASX:VTG)

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ASX VTG - Vita Group Share Price

The Vita Group Limited [ASX:VTG] share price is up 14%.

The company said they achieved record revenues.

They came in at $431.6 million. That’s an increase of 14%.

Vita Group Limited is down from its highs of $5.47.

But is this the turn around investors have been waiting for?

Is now the time you should buy Vita Group Limited?

Today, we’ll take a look…

Who is Vita Group Limited [ASX:VTG]?

Vita Group Limited sells and markets technology and communication products.

You may know of them as a licensee to the Telstra brand.

It has both retail stores and business centres around Australia.

The company also operates through Fone Zone, One Zero and Next Byte.

It also has Sprout, a technology brand. And Artisan Aesthetics Clinics and SQDAthletica, which are health and athletic brands.

Vita has a market cap of $204 million. That makes it a small company.

Today, VTG provided the market with its half-year reports.

The company said it achieved record revenues of $431.6 million.

This came down to increased handset costs and also improving accessory sale revenue.

Vita Group also saw an increase in profits by 2%. This brought the company’s profits for the first half of 2020 to $117.5 million.

But it might not be that rosy for VTG in the second half.

The company has already flagged potential problems with supplier Apple coming under pressure.

How this will play out is unknown right now.

So, is Vita a buy or a sell?

Unfortunately, I can’t answer that for you.

But maybe the chart can give us a clue.

VTG share price jumps on earnings report

Take a look below…

Vita Group Share Price - ASX VTG

Source: Trading View

[Click to open in a new window]

What you’re looking at above is the weekly chart of Vita Group.

As you can see, the company is way off the highs that it made in 2016.

What’s interesting to see, though, is that the lastest spike higher — which you can see on the right side of the chart — may point to growing confidence in Vita.

It may not be wise to act right now since the news is now in the price.

Though, if you want to see how this all plays out you may want to stick VTG on your watchlist.

As always, this is not a recommendation to buy or sell VTG. It is an update only. I hope you found it useful.

Until next time,

Jonathan Evans Signature

Jonathan Evans,
Analyst, Profit Watch

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