Rippling US inflation data recently caused a sell-off in global markets. In the midst of this trend, we look into two Australian listed companies that may present an opportunity to buy high and sell higher, trading at an all-time high during the uncertainties.
Gaming
Playside Studios Ltd (PLY)
Playside Studio Is an Australian game developer. The company has made strides in securing deals and contracts since its listing. Among the deals was an agreement with Facebook (now known as META); the agreement allowed Playside to develop games for Facebook Horizon VR. Despite the short duration of the contract, Playside CEO Gerry Sakkas said: “This is another step in building our market reputation and ability to scale in the global market and drive revenue growth through our abilities and brand.”
Subsequent to the agreement, Playside acquired Dumb Ways To Die. Sakkas says the acquisition “is a strategic mobile franchise acquisition for PlaySide.
“Dumb Ways To Die is one of the largest Australian made gaming brands with a truly global organic reach.”
As the share price continued to surge, trading was halted in November 2021 prior to the companies’ announcements, including the landmark agreement with 2K games and the capital raise of $28 million aimed at accelerating the growth of the company.
This was followed by another partnership with One True King (OTK) a US-based organization with a global reach of 21 million.
Shifting into the metaverse, Playside announced that it has entered into an agreement with Shiba Inu. As part of the agreement, Playside will “provide production, design, engineering, art, user interface, and experience development services to Shiba Inu Games” the company said. The agreement payments will be in USD and not crypto.
According to Sakkas, “Emerging technologies continue to gather pace, and this is an ideal opportunity for PlaySide to collaborate in this field, expand our skill base and showcase our development abilities.
“With booming global trends, such as the metaverse and the growing popularity of new technologies – including cryptocurrencies, non-fungible tokens (NFTs), and blockchain gaming – new opportunities in games continue to emerge.”
During the first quarter of the company’s 2022 financial year, Playside revealed that revenue was up by 114% from the previous comparative period (PCP) to US$4.04 million, representing a 29% quarter-on-quarter growth. Comprised of the Original IP and work-for-hire businesses; Original IP business revenue was up by 227% on pcp (22% QoQ) to US$2.7 million, with Work-for-Hire increasing by 46% QoQ to US $1.33 million (25% pcp).
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Artificial Intelligence
Brainchip Holdings Limited (BRN)
Trading at an all-time high, Brainship is an AI-focused group, producing AI chips and processors. Brain chip is one of the companies that have shown strong resistance against economic turmoil. Between December 2021 and January 2022, the group has seen its share price increase by more than 200%.
After being granted various patents, the group in November announced that it has entered an agreement with MegaChips, which according to the company, “provides MegaChips with an intellectual property license for use in designing and manufacturing BrainChip’s Akida technology into external customers’ systems on chip designs.
“In exchange for the IP and certain engineering services, BrainChip will receive an upfront license fee and additional payments over and above the term of the agreement.”
The company share price experienced several halts in trade due to various announcements that had a material effect on the stock.
In terms of finances, despite the 42% increase in expenses and a loss in income after tax during the half-year end (30 June 2021), revenue from operations increased to US$767 545, representing a 5 629% growth from the previous year in the same period.
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Roundup
With inflation data being on the line, and considering interest rates and bond yield, this may have an impact and trigger sell-off, which may, in return, present opportunities to “buy the dip”
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Read: 3 Aussie Picks for 2022
Sources – EasyResearch, Brainchip Holdings Limited, HPlayside Studios Ltd.
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