Should you buy shares of 1-Page Ltd today?

The share price of 1-Page Ltd (ASX:1PG) has plunged over the last three months.

| More on:
a woman

Shares of 1-Page Ltd (ASX: 1PG) have swung wildly in recent months. After hitting a high of $5.69 in September, the share price has cooled considerably and is now trading at $3.07, down 46% from that point.

Who is 1-Page?

Inspired by the book called “The One-Page Proposal”, 1-Page is a Silicon Valley-based company that is striving to revolutionise the way in which businesses around the world hire and promote new talent.

Essentially, the business has developed a platform that allows companies to save time and money in reading through thousands of resumes by instead asking applicants to complete a one-page proposal. It can reportedly reduce the time-to-hire from 13 weeks to just 4 weeks and eliminates most applicants who are not suitable (or not qualified) to complete the tasks that would be involved in the job.

It can also help to reduce staff turnover by better ensuring the right person is hired in the first place.

Along the way, 1-Page has picked up a number of key clients, including businesses such as Starbucks, Red Bull, Amazon and Sears. Most recently, it said it had signed nine annual contracts with a value between US$50,000 and US$300,000. These deals are extremely important for the company, and indicate a promising future.

Share Price

Indeed, the concept behind the business is exciting and was one of the primary reasons why the company’s share price rose an astonishing 2,745% from the time of its initial public offering (IPO) in October 2014, to its peak price in September this year. Even at today’s discounted price, the business boasts a market value of nearly $470 million.

If 1-Page’s platform truly takes off and becomes a global success, that price will likely look very attractive in hindsight. Indeed, it could go on to rival established and dominant businesses such as SEEK Limited (ASX: SEK) and LinkedIn.

The fact is however, it’s still very early days for 1-Page and there is a very big risk that it won’t succeed in its endeavors. To begin with, the company is generating very little revenue today (just $158,900 in revenue in the six months to July 2015), while cash flows also remain weak, which makes $470 million a very expensive price tag on the business. That likely explains the recent pullback in the company’s share price.

Although 1-Page’s revenues and cash flows remain low, it will begin to generate more as it signs more customers. For instance, 1-Page said revenues increased 20% during the third quarter (compared to the quarter immediately prior) and a “material uplift” is expected in the fourth quarter.

Should you buy?

Personally, I’m very excited to see what 1-Page can achieve, and believe management is capable of growing the company significantly from where it is today. While investors could look to take advantage of the recent dip in price it is vital that they remember 1-Page is a very risky and speculative business which should only be included in a properly diversified portfolio.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of, Starbucks and LinkedIn. Motley Fool contributor Ryan Newman owns shares of 1-Page Ltd,, and LinkedIn. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

person reading news on mobile phone
⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »