The share price of life 360 (360) has moved higher by 20% since our initial purchase on the 23rd of April 2024 and is currently trading around the $16.00 level.
Since our initial purchase the company has completed an initial public offering raising $175 Million in the US market. The company is now duel listed on both the NASDAQ and the ASX.
The raising in the US was to fund further growth plus offers a number of other benefits namely:-
- Enhanced visibility – Listing in the US increases visibility to new investors they may not be able to buy Australian listed shares
- Employee Incentives – Company can offer stock-based compensations that helps attract and retain talent
- Valuation – US tech companies tend to trade on higher multiples
Being duel listed also means the company will likely start reporting quarterly earnings to meet US listing rules. As we have experienced numerous times in the past the release of quarterly earnings can cause extreme short-term volatility to either the upside or downside.
So considering this and with the share price running into resistance at around $16.00 we will use the recent rally to sell 200 at $16.00 or better and increase the stop loss.
TRADE ACTION
Current position : 500 shares purchased at $13.39
Take profit : sell 200 shares at $16.00
Stop loss : Increase stop loss to $14.40
