Situation Normal: Big Un’s Shares Swings and Roundabouts

The more things change, the more they stay the same.

The saying dates back to the mid-1800s and is attributed to little-known French writer Jean-Baptiste Alphonse Karr. The saying could easily apply to the almost daily ups and downs of the local stock market over the past week.

Take one of the local market’s big success stories of last year, Big Un Ltd [ASX:BIG] for instance. Big Un’s stock plummeted 32% to $1.87 last Friday, after opening the day at $2.06.

The firm’s share price has declined from a high of $4.98 in November 2017 and has fallen from $3.73 since the start of February.

The recent plunge came after negative publicity over the firm’s involvement with FC Capitol’s small business lender Finstro. For more on that story, check out this update earlier in the week over at Markets & Money.

Subsequently, Big Un countered with a market update on their relationship with Finstro. CEO Richard Evertz said:

BIG does not loan money to SME’s nor currently earn commission from Finstro on any loan subsequently taken up by SMEs. BIG values its ongoing partnership with Finstro which allows us to offer our customers alternate payment solutions for their video marketing packages. This has proved to be very popular with our customers and we are currently exploring the ability to offer similar options to our overseas customers. The ability to make it easy for customers to take up BIG products is key to market penetration and leveraging our first mover advantage’.

Though Big’s shares are down again slightly today, the firm has made up some of the ground lost last week, sitting at $2.26 a share at time of writing.

This comes after the firm recently released its annual report, which backed up projections made in the earlier market update.

According to the report, sales revenue in the 2017 financial year amounted to $13.49 million compared to $2.36 million in 2016 — a 473% increase. Cash receipts for the 2017 financial year came to $21.52 million, with $12.81 million in video revenue (up from $1.78 million in 2016) and $0.68 million in sponsorship fees (up from $0.57 million last year).

What now for Big Un?

The turnaround over the week is a good recovery by Big Un. The company had a fairy tale beginning in 2014, when Brandon Evertz became the youngest founder of an Australian publicly listed company at just nineteen.

Big Un has built on that in 2017, kicking off the year with its share price sitting at just $0.23.

Big Un’s ups and downs of the past week shows how volatile the local market can be. But, despite the swings and roundabouts, Big Un has managed to stay on the straight-and-narrow.

Maybe Big un isn’t one of ‘The Five Fatal Stocks You Must Sell Now’ after all, but you should read Vern Gowdie’s free report to find out the stocks you should avoid in 2018.


Ryan Dinse,
Editor, Markets & Money

Ryan Dinse is an analyst at Markets and Money. He has two decades of experience in financial planning, equity analysis and credit markets. Ryan combines fundamental, technical and economic analysis to identify and invest in good ideas at the appropriate stage of the economic cycle. He has a strong interest in technology, economic history and disruptive business models. His focus at the moment is as lead analyst on two of our most recent and innovative investor services, Crash Market Investor and Sam Volkering’s Secret Crypto Network. He will write about the exciting opportunities for investors to benefit from significant changes in world markets. He is a member of Fintech Australia, a former member of the Digital Currency Council, and is a fully accredited financial adviser.

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