MICT Stock Picked Up By MSCI: This Is Just The Beginning

MICT Inc (NASDAQ: MICT) stock is headed for the top yet again today, and the gains are likely far from over. The catalyst pushing the stock for the top this morning was announced after-hours yesterday, when the company said it was added to a popular United States index. 

Here’s what’s going on, and why MICT is likely gearing up for a big run ahead. 

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MICT Added To AN MSCI Index

In the press release, MICT said that it was added to the MSCI USA Micro Cap Index effective at the close of market yesterday. The company went on to explain that the index is used to measure performance of the microcap segment in the United States equity market. 

Management Commentary

In a statement, Darren Mercer, CEO at MICT, had the following to offer:

Our addition to the MSCI Index enhances the Company’s reputation amongst institutional investors. The Index is widely recognized as a benchmark for global institutional investors to optimize their investment portfolios. MSCI’s selection of MICT, following a detailed screening process, is a credit to what we have achieved in a short space of time, since transitioning into the fintech sector in September 2020.

This Is Huge News

The news issued late yesterday is overwhelmingly positive. Think about it, any index fund, ETF, or mutual fund that invests in the MSCI USA Micro Cap Index will now need to purchase MICT stock in order to keep their portfolios in balance. 

As a result, the company is likely to see a major pickup in institutional interest, which is great because it will lead to further demand for the company’s stock. As you know, the stock market is a system of supply and demand. So, this increased demand will tip the scales of supply and demand, likely resulting in significant growth. 

Just The Tip Of The Iceberg

When MICT issued its most recent quarterly financial results, it became clear that the company is firing on all cylinders, executing on the promises it made to investors. Here’s a quick recap:

  • Insurance. The insurance arm of the company generated about $8.2 million in revenue, representing the lion’s share of revenue and significant growth both year over year, and quarter over quarter. Moreover, it’s worth mentioning that in September of last year, the company started to enter the fintech space and had no insurance revenues before then. Not to mention, the license to sell insurance products nationally wasn’t achieved until very recently. So, we’re just seeing the beginning here and insurance revenues are likely to ramp up substantially. 
  • Commodities Trading. MICT is working with the Shanghai Petroleum and Natural Gas Exchange, and will soon be handling about 20% of the commodity order flow running through the exchange. That’s a huge opportunity to further enhance revenue growth. 
  • Trading Platform. Finally, MICT is working on a stock trading platform that will launch in Hong Kong relatively soon. The beta test is ongoing and in late stages, with the launch expected in late June or early July. 

Again, this is a company that just entered the fintech space in September of last year. It’s already creating meaningful revenues and is in late stages of testing before it launches more products that have the potential to generate significant revenue. 

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The Bottom Line

The bottom line here is simple. When we talk about MICT, we’re talking about a company that’s executing on all of its promises to investors. As a result, it has earned a position on a benchmark microcap index, generated meaningful revenue in well under a year of operations, and is likely to see significant growth ahead. All in all this stock is hard to ignore. 

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CNA Finance is not an investment advisor or broker/dealer. This article is for informational and entertainment purposes and does not constitute a recommendation to buy or sell any security. CNA Finance has a monetary relationship with MICT. Trading in penny stocks can result in significant losses.