JMIA (jumia), e-commerce in africa, but definitely not only it.
Updated
JUMIA is a German company that operates in Africa and is most known for its e-commerce side.
but, in my opinion, most interesting thing about this company is its other 2 parts of the company.
jumia logistics -> this part of the company offers logistic to the main e-commerce, BUT also is now open to third parties, both local sellers who wants to operate with non-jumia orders, as well as other business that needs someone to transport their goods. it makes me think of something like USPS with amazon when it first started.
jumia pay -> this is the part of the company that takes care of the payments. here the customers of the e-commerce can pay, but can also use this app to pay bills, mobile phone plans and a lot more.
just for your information, it is estimated that HALF of the mobile money of the world is used in Africa, as there are problems for the banks to work with people, which is not a problem we even heard of.
so, jumia pay is in my opinion, and following jumia founders also, the big play of the future. it can even become a fintech company by itself.
point is:
1) logistics in Africa at the moment is like shit for a loooot of reasons (just search for it, there are tons of articles) --> if jumia logistics reach a good logistic development, it will be the to-go company for other business in Africa who needs to transports their goods.
2) Africa is a place where people and banks do not co-operate at the best, and so mobile money and mobile accounts for money storage is a big big thing. --> because of that, as people pay with jumia pay for their goods bought via jumia e-commerce, they get stuck with jumia pay and that part of the company can really grow, and even expands in other businesses like it already did with bills and mobile phone plans.
talking about the stock itself, I did no fundamental research about the pure money thing, just the possibility there are in Africa, and I think that the price would not be that hight from 2 dollars bottom if the company has no future.
so, my play will be.
if 23 USD holds and the price bounce up 3 times or has a strong reaction, it is a good point to buy, and just put stop loss below 23 (22 will be fine). (it would be a double+ bottom)
if the price falls as low as 19 or 20, my buy price is 19.60 with a stop loss of 15.6 which is -20% from the buy point.
as for the target price, I think 89 is fine. I took this price as it is an ATH for sure, but it is not in the 90sh which IMO is a bad place to be stuck in.
last thing is. do not care too much how much your upside % is with price target 89, or ur just gonna HOPE it will work. so stick to SL (stop loss) and let time drive the market.
ofc, if major events happen in the market, this stock can be also destroyed by general pessimists, but it can as well skyrocket.
i will try to post news about this, but I would prefer not to change my initial plan.
but, in my opinion, most interesting thing about this company is its other 2 parts of the company.
jumia logistics -> this part of the company offers logistic to the main e-commerce, BUT also is now open to third parties, both local sellers who wants to operate with non-jumia orders, as well as other business that needs someone to transport their goods. it makes me think of something like USPS with amazon when it first started.
jumia pay -> this is the part of the company that takes care of the payments. here the customers of the e-commerce can pay, but can also use this app to pay bills, mobile phone plans and a lot more.
just for your information, it is estimated that HALF of the mobile money of the world is used in Africa, as there are problems for the banks to work with people, which is not a problem we even heard of.
so, jumia pay is in my opinion, and following jumia founders also, the big play of the future. it can even become a fintech company by itself.
point is:
1) logistics in Africa at the moment is like shit for a loooot of reasons (just search for it, there are tons of articles) --> if jumia logistics reach a good logistic development, it will be the to-go company for other business in Africa who needs to transports their goods.
2) Africa is a place where people and banks do not co-operate at the best, and so mobile money and mobile accounts for money storage is a big big thing. --> because of that, as people pay with jumia pay for their goods bought via jumia e-commerce, they get stuck with jumia pay and that part of the company can really grow, and even expands in other businesses like it already did with bills and mobile phone plans.
talking about the stock itself, I did no fundamental research about the pure money thing, just the possibility there are in Africa, and I think that the price would not be that hight from 2 dollars bottom if the company has no future.
so, my play will be.
if 23 USD holds and the price bounce up 3 times or has a strong reaction, it is a good point to buy, and just put stop loss below 23 (22 will be fine). (it would be a double+ bottom)
if the price falls as low as 19 or 20, my buy price is 19.60 with a stop loss of 15.6 which is -20% from the buy point.
as for the target price, I think 89 is fine. I took this price as it is an ATH for sure, but it is not in the 90sh which IMO is a bad place to be stuck in.
last thing is. do not care too much how much your upside % is with price target 89, or ur just gonna HOPE it will work. so stick to SL (stop loss) and let time drive the market.
ofc, if major events happen in the market, this stock can be also destroyed by general pessimists, but it can as well skyrocket.
i will try to post news about this, but I would prefer not to change my initial plan.
Note
I expect it to go at 26-27, but not higher. IMO it's better to wait and maybe shot it after using the channel top as a stop loss and to try to buy at 19 as I said in the main part of this analysis.Note
Reacted to 7.32 level, but still not a bullish trend: there are no higher lowsNote
We saw a double bottom followed by a V-shape recovery, and now we got a little higher highs - higher lows.What we don't have at the moment in volume though.
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