Big Un Shares Dive

Big Un Limited [ASX:BIG] has gone through a massive share crash, sinking 42.24%.

November last year, BIG peaked at $4.790 and has since dropped going into the final month of 2017 and early months of 2018. Their market cap stands at $275.787 million with an enterprise value of $194,49 million.

Big’s shares have been decreasing throughout February and three days ago, their shares fell 30%. Things have taken a bad turn for BIG, it may be hard for them to come back from this.

What was the cause for this unfortunate drop?  

Research indicates that BIG had a partnership with FC Capital through the Finstro platform, a small business lender. Finstro seemed to have provided funding to Big Un, allowing them to offer interest free payment terms to their customers.

However, BIG did not seem to receive any commission from Finstro and their investment into the company was going sour, as Finstro’s shares seemed to be at a low at the time.

According to various research sources, there may also be a decline in share trading with Big’s stocks as they have been on the decline for a very long time.

This may set them back in the long run, as customers could question the overall quality of their product. Research indicates that after customers learned that their services were funded through a Sydney finance company, they took their business elsewhere.

A business decision which was supposed to be beneficial seemed to have taken a back step and proved to work against their favour in just about every regard.

How to bounce back?

There hasn’t been much indication on what Big’s next plan of action is. They could cut all ties with Finstro, and begin sourcing money from their own pockets.

A marketing campaign which emphasises some kind of new innovation in tech which has been implemented into their business may make a turn for the better in some way. But how they would obtain such an asset is another matter entirely.


Kris Sayce,
Publisher, Markets & Money

PS: Big Un aren’t the only ones on a low, Vern from Markets & Money has written a free piece titled ‘Five Fatal Stocks You Must Sell Now’, which indicates some useful advice in shares.

Kris Sayce, dubbed the ‘Jeremy Clarkson of Australian finance’, began as a London finance broker specialising in small-cap stock analysis on London’s Alternative Investment Market (AIM). Kris then spent several years at one of Australia's leading wealth management firms. A fully accredited advisor in shares, options, warrants and foreign-exchange investments, Kris was instrumental in helping to establish the Australian version of the Markets and Money e-newsletter in 2005. He is the Publisher, Investment Director and Editor in Chief of Australia's most outspoken financial news service, Markets & Money.

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