What Does Aconex Do?
Aconex [ASX:ACX] provides a cloud based platform and software where firms, especially in the engineering and construction industries, can collaborate on joint projects.
According to the company, this allows those firms to cut costs, increase their efficiency and lower their risk. Aconex has a presence in both Australia and internationally. In total, the company has 44 offices across 22 countries.
What is the chart telling us?
What’s Happening to the Aconex Share Price?
Here is a daily chart of the stock…
Aconex was founded in 2000, but only listed on the Australian Stock Exchange last year. It raised $140 million from institutional investors. At the time, the Australian Financial Review reported that the company was notable for being the largest loss-making company to ever list on the ASX.
That hasn’t held the share price back. As you can see, the company has seen a prodigious rise in its share price since 30 April this year.
What Now for Aconex?
Recent announcements include a rise in forecast revenue in June (though still forecasted to record a loss), and various agreements with major companies such as Lend Lease, Bechtel and John Holland. A falling Aussie dollar will also help Aconex’s foreign exchange earnings.
There was major volume in the stock on July 1. I wonder if all the good news is out now, and a pause or pullback is due. Let’s wait and see.
Regardless, the company is certainly proof that there are profitable opportunities to be found in stocks, despite Greece and other worries. For more on why that is, go here .
Editor, The Daily Reckoning