Have we observed Nektan from all the possible angles? Nope! We’ve just realised that we haven’t commented on the fact that Nektan, a leading global casino platform and gaming services provider for the online casino industry, is listed on the London Stock Exchange. Below, we will inspect how well the Gibraltar-based company is doing in the world of trading.
Gaming technology platform operator Nektan PLC joined the London Stock Exchange on 3rd of November in 2014 under the ticker/share symbol NKTN. Nurturing a premium business-to-business (B2B) division, Nektan saw record revenue growth in this area in particular in the first three months of 2019. On the other hand, the B2C division is yet to showcase results that are expected as an aftermath of the continued growth of the company’s casino network. In recent developments, the company completed the sale of a majority stake in US operation Respin. They also signed up Mo Play, the betting partner of Manchester United football club, so these two events should reflect in the share price soon. In May, Nektan’s chief executive Lucy Buckley said that the company will focus on growing its “core” European and Asian businesses and increase the number of partners in their distribution.
Recent Numbers and Trends
Looking at recent statistics and reports, Nektan has indeed been gaining momentum this year. The firm saw revenues rise 75% up to the beginning of April. If we look even deeper in the past (three years deep) the revenue grew by 55% per year, compound. That’s quite fast, and most would think that these are outstanding news. However, real life and rules of cruel business teach us that fast revenue growth doesn’t always lead to profits. In fact, Nektan share price dropped down 42% a year in the same period. Nektan representatives said that they expect an improvement in trading for the final quarter of its current fiscal year.
If we take a look at the stats over the past quarter, the shares have been lower -13.19%. Going back 6 months, they’ve changed -50.00%. By using various tools, such as the Williams Percent Range, the Average Directional Index, the Commodity Channel Index or the Average True Range, traders can recognise trends on the stock market.
One share of NKTN stock can currently be purchased for approximately 10.60 GBX (July 2019). According to publicly available analysis, Nektan stock price will not crash any time soon. The long-term earning potential is +106.51% in one year. The same sources report that the price can go up from 10.60 GBX to 21.891 GBX in one year. Forecasts describe Nektan shares as favourable long-term investments. Furthermore, the company has been receiving positive news coverage lately, and the headlines are known to boost the stock’s share price a bit, as well.
Nektan Shareholders Keeping a Low Profile
Do the investors have a say in this? What’s their take on the Nektan share price situation? Clearing the debt should put the brand in a strong position and the management has succeeded in reducing the group’s debt commitments by 43%, as was revealed in an upbeat interview in March given by chief executive Buckley. On the other side of the spectrum, a number of shareholders are not praising Nektan on the stock exchange chat at the moment. They seem concerned with the company’s debt towards HMRC and breaking even.
Those who bought LON:NKTN shares three years ago are now facing a disappointing reality. The share price has tanked by a massive 80% in this three-year period. Holders experienced a loss of 31% in the previous year, and that happened while the market was up about 6.6%. On a weekly level, the Nektan share price would bounce by a small percentage, but that is not enough. NKTN investors want to see the potential of their stock becoming a reality. They, like all others, are always trying to get an advantage in the equity market, hoping to find that great stock pick that provides a noticeable boost to the portfolio.