New stock Splitit Payments [ASX:SPT] rose over 30% in early morning trade today. Splitit was only listed on the ASX yesterday and surged 90% on its first full day of trading.
Shares offered in the Initial Public Offering (IPO) were priced at 20 cents. The stock is currently up 129% since listing.
Headquartered in Israel, Splitit is small-cap stock focusing on the payments sector.
What’s the news behind this price move?
Yesterday, the company announced strong growth across its key performance metrics and currently has a bright outlook with a huge market to target. It’s also drawing comparisons to another payment related stock called Afterpay Touch Group Ltd [ASX:APT].
Afterpay has been extremely successful — it traded for $3.42 in August 2017, today it trades around $15.71 and has gone as high as $23.
It would not be unreasonable to suggest the stock is likely to cool from here in the short-term. It’s had a prodigious rise already. I’m generally cautious about buying stocks that have just listed in general. Often they retreat after an early run.
However, over a long time frame, Splitit is certainly an interesting business worth following. One suggestion is to use this time to study the business and management, and consider a more strategic entry point.
This article is not an endorsement of Splitit or a recommendation to buy and sell. It’s an observation of its positive news announced yesterday only.
One idea is to include Splitit on a watch list and watch for further announcements to gauge the progress of the company from here.