Why Class Ltd’s Share Price Rose Today

What does Class Ltd do?

Class Ltd [ASX:CL1] sells a cloud based self-managed super fund (SMSF) administration package.

The company also has a version of its software for administering investments outside of superannuation.

What’s happening to drive the share price?

Results for the first half released in February were very positive. For the first half of FY2016, the company posted a 111% increase in net profit.

The company is continuing to sign on new clients, experiencing record growth in the number of billable portfolios on Class Super.

In April the company achieved a significant milestone, having passed the 100,000 mark for SMSFs administered on the Class platform.

On top of the strong growth in Class Super, there has been increasing interest in Class’ non-SMSF solution which administers investments outside of superannuation.

What now for Class Limited?

SMSFs are finding real favour among Australians, as they give people the ability to choose investments and minimise tax; as a result, the sector is surging. The SMSF sector is the fastest growing sector of Australia’s super system. And it’s a major concern to the big funds because they’re losing members.

SMSFs now comprise about one-third of Australia’s $2.04 trillion superannuation system .

Close to 600,000 self-managed super funds are now in operation, according to the latest statistics released by the Australian Taxation Office. The average balance of a SMSF now exceeds $1 million.

Class Limited is a company servicing a growing sector, which can only get bigger. The share price continues to find higher levels of support, which tells you what you need to know.

The trend is up. Until the chart of the company share price says otherwise, the outlook for this company looks satisfactory for the immediate future.

Terence Duffy,
Cycles, Trends and Forecasts

Terence Duffy is an analyst and chartist, specialising in researching economic trends and cycles.  His primary focus is housing and land affordability. But you can also depend on him to offer his unique analysis of stock market charts. As Terence will show you, the charts often forecast, well in advance, the good or bad news to come — which he details in Cycles, Trends and Forecasts.

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