The Reckon (ASX:RKN) share price is gaining as an ASX mystery unfolds

Reckon shares are the winner in today’s game of he said, she said.
The post The Reckon (ASX:RKN) share price is gaining as an ASX mystery unfolds appeared first on The Motley Fool Australia. –

Shares in Reckon Limited (ASX: RKN) are flying out the door today — and the company is as blindsided by the craziness as anyone else. At the time of writing, the Reckon share price is 93 cents, a whopping 17.83% higher than its previous closing price.

Reckon’s dramatic day began before the market opened when Novatti Group Ltd (ASX: NOV) announced it had agreed to acquire at least 15% of Reckon’s outstanding shares. However, Reckon quickly declared it had no knowledge of Novatti’s plans.

Reckon provides accounting and bookkeeping software, while Novatti is a payment services provider.

Let’s take a closer look at the today’s ASX soap opera. 

Stock market drama

This morning, Novatti announced it had entered into purchase agreements for the acquisition of at least 15% of Reckon’s shares on issue.

However, Reckon responded only hours later, saying it had no idea Novatti planned to become one of its major shareholders.

According to Novatti, it has an agreement to buy 17 million shares of Reckon for $1 each.

Novatti’s shares have been frozen today as it undertakes a capital raise. Some of the proceeds are intended to go towards buying a large stake in Reckon.

Peter Cook, Novatti’s managing director, said:

We are delighted to have secured a strategic stake in ASX-listed Reckon…

We look forward to successfully completing the capital raising and joining the Reckon share register as a major shareholder.

Reckon, in turn, said it’s “monitoring the progress of Novatti’s proposed acquisition of their strategic stake”.

However, the news that shocked Reckon has excited the market – likely due to Novatti’s willingness to pay $1 per share. Reckon shares have spent the last 12 months trading for between 62.5 cents and 90.5 cents apiece.

Reckon share price snapshot

Currently, the Reckon share price has gained around 20% on the ASX in 2021.

It’s also 38.68% higher than it was this time last year.

The company has a market capitalisation of around $104 million, with approximately 113 million shares outstanding.

The post The Reckon (ASX:RKN) share price is gaining as an ASX mystery unfolds appeared first on The Motley Fool Australia.

Should you invest $1,000 in Reckon Limited right now?

Before you consider Reckon Limited, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Reckon Limited wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

The Novatti (ASX:NOV) share price has hit an all-time high

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!