STOCK WATCH: Less Doom, Some Gloom, Did Investors Speak Too Soon?

Natasha Sholl By Natasha Sholl | 22 Jun 2022

In a reactive and highly volatile market, there seems to be (some) level of self-correction, with good(ish) signs from (some) companies.

If last week’s ASX headlines were anything to go by (Stock Watch included….) there should be nothing positive to write about the E-Commerce Index this week. Bear market. Inflation. COVID landscape. Consumer sentiment. It’s been rough, to say the least. And yet…despite all this, the last week has managed to bring with it some good tidings. It’s all relative, sure. But it’s not quite the implosion that seemed to be on the cards seven days ago.

BikeExchange shares are back up to $0.02 (17.6% share price growth in the last week) after announcing yesterday the results of its Entitlement Offer. Eligible shareholders were invited to apply for one new fully paid Ordinary Share at an issue price of $0.02 per New Share for every existing share. Acceptances from eligible shareholders totalled less than $2m. The board also received commitments from institutional, professional and sophisticated investors of $2,654,218. This, combined with the placement of $347,863 announced in May, brings the total equity raised to $4,924,709. This is less than the $6.3 million it hoped to raise. It will update the market in relation to the Shortfall in due course. A not altogether unexpected result.

Perhaps slightly unexpected…is Temple & Webster on the way up again? While its share price of $3.53 is still down 3.3% over seven days, we can see that it is tracking in the right direction (given it closed at $3.20 on Friday). There have been no announcements that would account for a change in investor sentiment, so whether it’s just a natural cycle of the regular up-down we’ve been seeing lately, or whether this will be a more longer term trend remains to be seen.

We can see a similar(ish) pattern with Adore Beauty. At $1.08 at close of ASX yesterday, that’s still a 5.3% dip over seven days, but given it was $0.99 at close last Tuesday (a drop from $0.14 the day before that) there’s still potentially some good news here (if you squint). Kogan, similarly, is down 2.6% over seven days, but at $2.96, it could really go either way. It’s up from the $2.80 at close on Friday, but far from the $3.22 it closed the Friday before.

Alas, no such good news for Booktopia, now below $0.20 and closing at $0.19 yesterday. There was speculation that the share price would pick up with its focus on growth and strategy for new leadership, however this hasn’t eventuated. Shares are now down 36.7% over seven days.

ASX Listed E-Com Index

Source: ASX Listed E-Com Index based on ASX reporting for the period

Cettire is stagnant, at 0% with a share price of $0.39. It was previously on a quite vicious downwards spiral and seemed to have well and truly fallen out of favour with investors. Whether this momentary reprieve is just a short break before it’s decimated (likely) or sign of a change in investor sentiment (unlikely) will become more clear in the coming days.

Redbubble is also pretty steady at -0.6%, closing at $0.85 yesterday. MyDeal is steady at +0.5% and will likely remain at ~$1.02 so until its potential delisting if / when the Woolworths takeover bid goes ahead.

The E-Commerce Listed ASX Index is down 3.5%, compared to the ASX200 which is down 2.4%. Essentially the good news is that there isn’t more bad news, so…glass half full? There looks to be some level of correction after a massive sell off in the retail sector. After a dire few months, it’s hardly a show of confidence from investors, but there does seem to be some level of: ‘Oops, we may have overreacted, soz.’

Figures are current as at close of ASX on 21 June 2022. This is analysis only and not intended as investment advice.

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