Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


GeoOp slides to record-low as investors cautious on growth

GeoOp slides to record-low as investors cautious on growth stocks

By Suze Metherell

June 27 (BusinessDesk) - Shares in GeoOp, whose software allows mobile businesses such as builders to manage their workforce, dropped to its lowest price since listing last year, as investors shunned growth stocks in a shift to more cautious sentiment.

The NZ Alternative Index listed stock fell 7.8 percent to $1.06, before all trading halted on the NZX due to a technical glitch with the stock market operator, well below its debut price of $2.40 in October last year and have plunged 76 percent from its high of $4.49 in November. The company raised $10 million at $1 a share in a private offer before listing, which it said at the time was more than three times oversubscribed.

"It's simply a reflection of a bit of caution creeping into that whole space with those tech companies," said Mark Lister, head of private wealth research at Craigs Investment Partners. "Those sorts of stocks can power ahead pretty aggressively when things are going well and when people are really upbeat on their prospects, but because of their volatile nature and because they don't really have any earnings or profit behind them, when things turn cautious they fall harder as well."

Growing geopolitical risk including increased conflict in Iraq, rising interest rates, and global markets trading at all-time highs had investors more cautious across the world, while upcoming listings of tech-based companies had investors pulling cash from the stocks to fund new investments, Lister said.

Xero, the cloud-based accounting software firm, rose 0.4 percent to $26 but has slipped 43 percent from its March high of $45.99. Pacific Edge, the Dunedin-based biotech company, was unchanged at 81 cents, more than half of its February high of $1.76. Diligent Board Member Services slipped 0.3 percent $3.98, and is 43 percent below its June 2013 high of $7.06.

"All of those stocks which are really exciting growth stories, but at the moment aren't very profitable, are the ones that have been star performers over the last couple of years, and have had a pull back lately," Lister said. A more cautious tone was in the market after what had been a turbo-charged first-half, which saw the NZX 50 Index reach all-time highs, he said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news