Crash: The GetSwift Ltd share price plunges 55% upon its return to trade

Credit: Дима

The GetSwift Ltd (ASX:GSW) share price plunged 55% to $1.33 following the company’s return to trade this morning. GetSwift last traded at $2.92 prior to its suspension, and its 52-week high was $4.60 per share. Despite today’s fall, shares are up 235% in the past 12 months:

source: Google Finance

As I wrote this morning, Getswift has a number of similarities to collapsed company 1-Page Ltd (ASX: 1PG) which recently became a medical marijuana stock.

With less than 50% of Getswift’s contracts having “progressed through to early stages of the revenue generation phase” it’s not clear how much money Getswift will end up making from its deals. It also is not clear what the ‘early stages of the revenue generation phase’ are. It is not explicitly clear whether these contracts are currently generating sales or not.

In my opinion, this comment appears to be an example of GetSwift using language to obfuscate meaning – something it was repeatedly queried by the ASX over, in relation to its Commonwealth Bank of Australia (ASX: CBA) contract.

Overall I think GetSwift has ‘done its dash’ with investors and only time will tell if it will make something of itself or sink into obscurity like 1-Page. For now I think GetSwift is very risky and would avoid it entirely.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor Sean O'Neill has no position in any of the stocks mentioned. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.