Invast Blog

Small Cap Favourites: ChimpChange Limited

We recently published a trading recommendation on ChimpChange (CCA) for Invast clients. If you want to see what our call was – with entry and exit guidance – you need to sign up as a client to get access. We’ve been screening for genuine small cap technology opportunities for the past few weeks and think CCA has what it takes to rise up there as an “under the radar” type of stock. This is a hard category to get right, but the key ingredients are usually the following:

  • Huge growth potential with high returns on investment and limited capital
  • Management with skin in the game, having come from experience in the same domain
  • A decent board and advisors to help steer the ship

ChimpChange ticks those boxes and best of all, it has plenty of doubters in the market. So we have taken note. The business is tackling a big problem – the disengagement of millennials when it comes to wealth and banking in general. This is a problem for banks and large financial institutions because eventually the wealth will transfer to these millennials over the next few decades. Millennials are the most likely to adopt disruptive technologies and that worries the banks. Imagine what happens in the next 10 to 20 years when blockchain and digital currency become mainstream, Apple and Google dominate the mobile payment space and mortgage products become commoditised by peer to peer lenders.

Many banks are fearing this reality (we speak to the management teams every day).

ChimpChange has by no means answered this problem, but it is attempting to do so. It has a reasonably sound and experienced management team with a reputable board. It’s in the right space, it has a market cap of $34m and huge upside IF it can gain track. Again, the trading call and entry/exit levels is only available for Invast clients. If you don’t yet have an account, visit our homepage for more guidance.

 

Peter Esho

Chief Market Analyst

Peter Esho is a member of Invast’s Investment Committee and Chief Market Analyst at Invast Financial Services in Australia.   The Invast’s Investment Committee constructs professionally constructed global thematic portfolios of Direct Market Access (DMA) CFDs over highly liquid global shares and ETFs through its new PortfolioInvestor platform. Since 1960, the Invast Group has grown to become one of the largest and most successful global brokerage firms, offering state-of-the-art trading technology and unparalleled service catering to all levels of traders.

Invast Financial Services Pty Ltd (ABN 48 162 400 035) is regulated by the Australian Securities and Investments Commission and holds an AFS Licence 438283 which authorises it to carry on a financial services business in Australia.

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