Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.
Before reading this article, it is recommended that you read the previous article “Penny Stock INP- long term investment opportunity?” (https://youth-investment-group.com/2019/08/25/penny-stock-inp-long-term-investment-opportunity/
In the past month, Incentia Pay’s share price has decreased by 35% from 0.035 cents (22/8/19) to 0.023 cents (3/9/19). Despite INP’s decrease in share price the company is still considered to be a long-term investment opportunity.
INP’s decrease in share price was related to their operating results for 2019. INP released their Operating Results Overview on the 30thof August. There was one main highlight of this report. That was, INP’s revenue has decreased by 28% between 2018-2019.
However, do not be discouraged by INP’s decrease in share price. INP has restructured their company by selling Bartercard Ltd for $5million and Gruden for $1.65million. INP’s restructure had two main intentions. Firstly, the removal of these non-core businesses has allowed INP to invest more capital and time into their ‘Entertainment brand’. Thus, allowing INP to increase the sales of their entertainment brand. Secondly, the restructure has allowed INP to cut costs. The selling of Bartercard and Gruden has reduced INP’s operating cost by 10 million (employees’ wages and projects). Furthermore, INP has entered a $15 million loan deal with Suzerian Investment Holdings Ltd. This injection of money will look to improve INP’s working capital management.
These two decisions highlight how INP can still be an excellent long-term investment.
In conclusion, do not be discouraged by INP’s recent decrease in their share price. The restructuring of their business and their loan deal with Suzerian Investment may indicate a short-term decline. However, these changes could spark long term growth for the company. Ultimately, increasing their share price in the future. Therefore, it is recommended that investors watch the impact of INP’s new changes on their share price and profits.
Here is our free, uncomplicated, and extensive ASX portfolio
If you enjoy our articles or are wanting to learn more, you can subscribe to us for free via email and get updates when we post new articles. From all of us at YIG, thank you for the support.
The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
Written by Thomas He , Associate of YIG.