Insights

The Straker (ASX:STG) share price is rocketing 13% today

The Straker Translations Ltd (ASX: STG) share price is rocketing higher today after the company released its Appendix 4C and Quarterly Activities Report.
The post The Straker (ASX:STG) share price is rocketing 13% today appeared first on The Motley Fool Australia. –

A drawing of a white rocket streaking up, indicating a surging share pirce movement

The Straker Translations Ltd (ASX: STG) share price is rocketing higher today after the company released its quarterly activities report.

The Straker share price is up a hefty 13.55% at the time of writing, trading at $1.76 per share.

Straker is a cloud-enabled translation services provider, involved in both business and personal translation. Let’s see what’s driving its share price so much higher today.

Straker’s continued growth

Straker reported $9 million in unaudited revenue for its March quarter results, up 19% sequentially on the previous December quarter. Its FY21 revenue was up 31% on the previous year to $31.3 million, while its acquisition of translation service Lingotek has brought in $1.9 million in two months.

The company is attracting blue-chip clients, with Panasonic signing up to its subscription-as-a-service (SaaS) for Lingotek, and its strategic alliance with IBM is “driving a surge in translation and product development activity”, according to the report.

The company says its revenue slowed down seasonally over the northern hemisphere winter, exacerbated by various COVID-19 lockdowns, however by March was already rebounding and continues to grow.

Gross margins improved to 57.8%, operating cash inflow of $18,ooo was slightly down on the previous quarter, and Straker reported net outflow of cash of $313,000 for the quarter, with cash reserves of $7.175 million.

What did management say?

CEO Grant Straker said the company was progressing well and continued growth was expected.

After the intense activity of the third quarter, a period when we negotiated the IBM alliance and the Lingotek acquisition, we have turned our focus onto executing on the enormous opportunities that have emerged from these transformational agreements.

We are seeing a significant ramp up in content delivered to IBM since the alliance went live in January. March content volumes are 60% ahead of the content we delivered to IBM in February and we have seen no letup in this growth since the end of the quarter. We expect the positive revenue impact from the IBM alliance to become more apparent in the current and future quarters.

Straker share price snapshot

The Straker share price is up 4.7% this week, adding to monthly gains of 16%. It’s risen 95% higher over the past 12 months.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Straker Translations. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post The Straker (ASX:STG) share price is rocketing 13% today appeared first on The Motley Fool Australia.

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!