Greetings Traders!
Our last NASDAQ trade alert has been absolutely remarkable, rallying to a high of 19.45 for upside of 270% from 5.25 following our alert on April 24th.
We would like to bring to your attention another NASDAQ trade alert which we believe could provide you with potentially significant upside.
New Trade Alert: ShiftPixy, Inc. (NASDAQ: PIXY)
PIXY helps “businesses streamline employment operations in sectors where high turnover is hampering growth.”
PIXY’s technology is particularly helpful for “mid- to large-sized restaurant, hospitality, and retail chains, where employees are the heart of an organization”, curing “the labor headaches many organizations face.”
“The gig economy’s mainstream adoption has caused much of the part-time labor force to leave the standard workplace in favor of gig platforms that provide the desired flexibility.”
“By leveraging the gig economy concept and focusing on companies who rely on part-time labor, ShiftPixy’s ecosystem and mobile platform have created a solution that allows operators to retain a dedicated workforce while achieving desired growth and scalability.”
PIXY’s “next-gen mobile engagement technology” helps businesses manage“regulatory requirements such as paid time off (PTO) laws, insurance and workers’ compensation, minimum wage increases, and the Affordable Care Act (ACA) compliance.”
ShiftPixy’s Co-Founder and CEO, Scott Absher, stated, “We talk with scores of operators every week that struggle with high turnover. We also speak with private equity firms who own multi-unit restaurant and QSR brands in their portfolio and can relate to today’s part-time labor troubles. ShiftPixy can improve their portfolio companies’ efficiencies and their bottom line by establishing much needed stability and reliability in the workforce.”
Recently PIXY unveiled “Cutting-Edge Fintech” with the “primary differentiator” to PIXY’s technology being “its ‘micro metering’ of essential commercial insurance coverages required by operators – namely workers’ compensation and auto coverages on a delivery-by-delivery basis”
In addition, PIXY is using “blockchain ledger to process and record critical P2P connections.”
Just a few weeks ago, on April 13th PIXY reported “Fiscal 2018 Second Quarter Results” which we believe may have been overlooked by the market.
“2018 Second Quarter Highlights”:
- “Gross billings grew 58.1% to $48.6 million, compared to $30.8 million for the 2017 second quarter; gross billings increased 20.9% sequentially from $40.2 million in the prior quarter.
- Revenues increased 45.8% to $7.9 million, compared to $5.4 million for the second quarter of 2017.
- Worksite employees increased by 3,405 to 6,798 compared to 3,393 as of February 28, 2017; the number of employees at the end of the quarter also represents a sequential increase of 1,116 over the number of employees at the end of the first fiscal quarter 2018.
- Gross profit was $0.9 million versus $1.1 million in the prior year period, and net loss per share was 9 cents during the quarter, versus a net loss of 4 cents the prior year period.”
Furthermore, on April 17th PIXY announced that it “has welcomed delivery services company Zion Delivery Service as a client into its ecosystem to help streamline its recruiting and scheduling demands”.
“By taking over employer status of Zion Delivery W-2 delivery drivers, ShiftPixy will empower Zion Delivery to scale and grow its work with Amazon Logistics.”
Moreover, just this morning, PIXY released breaking news that could be an additional catalyst for upside potential:
California Supreme Court “Gig Economy” Ruling Accelerates Opportunities for ShiftPixy
IRVINE, Calif., May 03, 2018 (GLOBE NEWSWIRE) — ShiftPixy, Inc. (PIXY), a disruptive workforce engagement platform provider, applauds the recent California Supreme Court ruling in Dynamex v. Superior Court of Los Angeles, which could pressure gig platforms to begin classifying their workers as employees rather than independent contractors.
Businesses that reclassify workers as employees may face multiple new burdens, such as complying with minimum wage and overtime laws and needing to pay workers’ compensation, unemployment insurance and payroll taxes, which can significantly increase the typical business’s labor costs.
By harnessing ShiftPixy’s tech-driven platform and innovative compliant employment solution, these companies can avoid these workforce-related issues and added expenses, allowing them to focus on growing and developing their respective businesses. Leveraging the Gig Economy concept while also embracing employer status, ShiftPixy aims to let employers tap into this emergent employment model while still ensuring workers receive the benefits and protections they deserve.
“When we first launched ShiftPixy, various Gig Economy providers in the ridesharing and third-party delivery spaces were in the midst of misclassification lawsuits and allegations,” said Scott Absher, CEO of ShiftPixy. “ShiftPixy’s original DNA is in employer compliance, so our whole approach was designed to assure compliance one shift at a time. In light of this ruling, companies relying on an independent contractor workforce model must reassess the need to invest in new staff, insurance coverages, and operating systems, potentially taking over a year to incorporate compliantly. ShiftPixy’s turnkey approach would have an immediate compliant impact while still providing them a flexible workforce. ShiftPixy would be a perfect immediate cure for any gig platform facing this California Supreme Court ruling.”
PIXY has remarkable historical volatility. In the past 6 months PIXY has traded from as low as 2.00 to a high of 6.17 for upside of 208% in late 2017, and once again as low as 2.20 to a high of 6.35 for upside of 188% in March.
According to MarketWatch, PIXY has a float of only 3.56m. This could potentially explain the significant historical volatility that the company’s market valuation experiences. For example, our most recent alert which experienced gains of over 270% in just a few days also had a relatively low float.
While past is not prologue, PIXY is arguably currently trading closer to the lower end of the range it has experienced in the past 6 months, presenting potential opportunity.
In the event that PIXY holds its low from today, this could present upside opportunity if PIXY reverts to its moving averages.
PIXY has a 20 day moving average at 2.96, 14% above today’s close.
In addition, in the event that PIXY breaks to the upside and holds above its 20 and 50 day moving averages, this could present further upside potential.
However, don’t take my word for it, make sure to do your own due diligence.
Source: PR1, Website, PR2, Chart, PR3, PR4, PR5, MarketWatch
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