There are some companies who are, let us say, not quite as expert as they could be in handling the sentiment of the stock market. Others, quite simply are just too complicated for your average investor to get to grips with. Traditionally, in the UK this issue has been the bane of tech stocks and pharmas.
Of course, in a post Covid-19 world it is precisely these two areas that have led the charge of recovery for the bulls. Quite amusingly, it would appear that all of a sudden everyone apart from Professor Neil Ferguson is an expert in epidemiology, including Bill Gates, as well as being Bill Gates in their day job.
But getting back to Tern, we are now trading 2 years from the brief peak in the stock up towards 60p. The stock appears to have found a floor towards 10p, despite the incessant quibbling by bear inspired critics regarding funding, strategy, or any other nit-pick that could possibly undermine confidence in the stock. One would have thought that after two years plus the source of such gripes might have run dry – if only on a “protests too much” basis.
Fortunately, for fans of Tern, without short positions to worry about, it is likely to be that the market’s 2020 love of all things tech / online / virtual, et al, should be a tide strong enough to take Tern high, over and above specific developments at the company.
Indeed, it is strange that the latest RNS from Tern’s investee company Wyld Networks is arguably exactly the type of fayre AIM traders should / would love. Wyld have secured a contract with NHS Scotland to provide a contract tracing application for use in Care Homes. Given the Government created crisis in Care Homes, this development has to be seen as highly significant. The obvious implication is that it can be rolled out to other confined spaces such as offices, hospitals or events with large gatherings. Given that Tern only paid £78,000 for Wyld, the potential seems significant.
Also significant is Tern’s Device Authority, who are once again presenting with Microsoft today, while FundamentalVR is progressing with its surgical training platform in Germany, Taiwan, and has accreditation from the NHS and in the United States.
Therefore, it can be seen that Tern has been stressed tested not only by its critics and the AIM market, but now can enjoy its time in the sun as an in favour stock, in an in favour sector.