Should you get a Life ... 360?
1 minute read
I was recently introduced to an app called Life360, which is designed for family and friends to share their location. One of the cool features of this app is that it allows family members to track how fast people are driving and to call for assistance if someone is in an accident.
While the app is free, it also has some additional features, which subscribers pay for. When I investigated this company, I found it was headquartered in San Francisco but it had listed on the Australian Securities Exchange (ASX) in May 2019.
During the IPO, it raised $112.7 million by issuing 23.5 million new chess depositary interests (CDIs) at $4.79 each, as CDIs allow a non-Australian company to list their shares on the ASX. The company began trading on 10 May 2019 but like most IPOs, it traded down in price and by 23 March 2020 it had fallen over 70 per cent to $1.51.
Over the last 12 months, however, Life360 has achieved 20 per cent revenue growth year on year despite COVID-19, which has seen its share price rise over 300 per cent to a new all-time high this week of $6.49 with many analysts promoting the stock as a strong buy.
While I like the look of this stock and believe it has the potential to rise further, I think most of the rise has already occurred, at least in the short term.
That said, over the longer-term this stock looks attractive, as it is in the technology sector and has a broad international client base paying monthly fees, so subscribers can have peace of mind not only knowing where their loved ones are but that they are safe, which means their likely to be very loyal long-term users.
Dale Gillham is Chief Analyst at Wealth Within and international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of the award-winning book Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in all good book stores and online at www.wealthwithin.com.au
NB: Neither Dale or Wealth Within are affiliated with any of our related portfolios.
Short-term positions in small, early stage ASX companies,
with high potential and near term price catalysts.
Focusing on resource exploration, early-stage tech, and biotech.
Exceptional opportunities across a broad range of
early-stage growth sectors with strong management.
Seeking 1,000% plus returns across medium to long-term holds.
Longer-term positions in a variety of sectors.
Seeking strong management where traction is established and have entered into a growth phase.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.