MICT Inc (NASDAQ: MICT) is screaming for the top in the market this morning, following up on the strong gains seen out of the stock late last week.
Here’s what’s going on:
Three Reasons Investors Are Excited About MICT
Across social media, investors are actively discussing the opportunity that lies with MICT. After reading through countless messages, there are three reasons for the excitement that are continuously popping up. They include:
- Trading Platform Launch. In the middle of March, MICT informed investors that it had received its Hong Kong license to launch its trading platform. Toward the end of the month, the company said that it would begin testing the platform for a planned launch relatively soon. Based on all that’s involved in the testing, I’m expecting that the process will take somewhere between six and ten weeks. Nonetheless, the testing is ongoing as we speak and the trading platform will likely launch relatively soon, setting the stage for a tremendous catalyst just around the corner.
- Cash In The Bank. One of the biggest concerns when investing in penny stocks is the idea that a fund raise could be around the corner. However, when it comes to MICT, there’s absolutely no reason for a raise. By my calculations, the company has somewhere between $129 and $134 million in the bank as we speak. Not only is that plenty of money to execute on its plans, that amount of cash on hand is unheard of when it comes to a penny stock with a market cap of less than $200 million. You read that right, the company has more than half of its market cap sitting around in cash, outlining a significant opportunity.
- Revenue. In less than one year, MICT went from a pre-revenue company to a company that’s generating revenue, and that revenue is expected to see significant growth. Let’s not forget, the company is making waves in the Chinese insurance sector and recently signed an agreement to facilitate a large percentage of trades that go through the Shanghai Petroleum and Natural Gas Exchange. These moves, along with the company’s coming trading platform set the stage for significant revenue growth ahead.
In Other News
Beyond the trading platform, expectations of significant revenue growth, and cash in the bank that shows a clear undervaluation, MICT issued news today surrounding its subsidiary, Micronet.
According to the press release, MICT secured certification to operate its smart camera product on T-Mobile’s global media network.
As a result of this certification, the company is now able to advance its sales process with two significant potential customers to launch video telematics offerings.
In the release, the company reminded investors that its SmartCam is a unique, cutting-edge, all-in-one video telematics device designed to operate on the Android platform. This is a rugged, ready-to-go smart camera that supports a complete set of telematics features designed for in-vehicle use. The product was designed to address safety, vehicle health, and the tracking needs of operators of vehicle fleets.
In a statement, Darren Mercer, CEO at MICT, had the following to offer:
The certification of Micronet’s mobile smart camera to operate on T-Mobile’s network, which is one of the largest in the US, is an important advancement for Micronet as it validates the technology with one of the world’s leading mobile networking providers. We continue to see incremental success resulting from our investment in Micronet and look forward to continued execution on that business.
The Bottom Line
The bottom line here is that there’s good reason for all of the investor excitement here. Ultimately, MICT is executing well on all of its business segments, from trading, to insurance, to telematics, all seems to be going well.
As it continues to execute, there are several catalysts for investors to look forward to ahead, setting the stage for potentially significant growth ahead.
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Disclosure. CNA Finance is not a financial advisor or broker dealer. This article does not constitute a solicitation to buy any stock mentioned. The article represents the honest opinions of the author, but not necessarilly the outlet it was published on. CNA Finance has a monetary relationship with MICT. Trading in penny stocks can result in the loss of capital.