While BP/Shell may at least temporarily have had cold water poured on it, those looking for a fresh M&A contender need perhaps look no further than Boku.
The last we heard from Boku, the global network for localised payment solutions, was that it had promoted Leila Kassner to Chief Operating Officer in April.
This was significant as the company was clearly looking to build on its latest 20% organic growth, $99.3 million revenue, and processing $12.4B in transactions. The sizzle here is that the company, which has a £572m market capitalization, is in its global partnerships, with the likes of Amazon, Meta, Microsoft and Netflix.
Rather than being a client of Boku, it would be perfectly logical for one of the Magnificent Seven to simply takeover Boku, which has no debt, and a significant cash pile of £177m. Indeed, the Daily Mail highlighted this very point in March, suggesting that the company was “ripe for takeover”.
Given the relative undervaluation of the company (half a billion is nothing these days), and the unique technology riding the death of cash, one would be looking for M&A sooner rather than later.
Indeed, the technical of the share price underline this, with the shares bouncing off March/April support under 150p, and now at key resistance near 195p. This implies that traders have been buying into this situation since the tariff dip for the markets in the spring.
The overall pattern is that Boku shares are within a rising trend channel in place since mid 2022.
The top of the channel is heading for 230p, which could be seen as soon as the end of next month on a weekly clearance of 195p level. The situation is helped by a golden cross buy signal between the 50 and 200 day moving averages. Whatever happens, the 180p zone is providing support.
Current share price at time of writing: 193.90p
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
