MICT Stock To Climb On Magpie Launch

MICT Inc (NASDAQ: MICT) has been on an upward trajectory for the past couple of trading sessions, and for good reason. In the most recent earnings call, the company’s CEO, Darren Mercer, said he expects that Magpie Securities, the company’s stock trading app, would be launched in mid-September. 

That seems to be taking place as we speak. 

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

MICT To Launch Magpie Securities

As mentioned above, in the most recent earnings call, Darren Mercer, CEO at MICT said that he expects for the Magpie Securities launch to take place in mid-September. The yesterday, a news article broke on The Standard, a highly respected paper in Hong Kong that’s been around for more than 80 years, suggesting that the launch would take place early next week. 

In fact, the first sentence in the article reads, “Magpie Securities is set to launch a new online securities trading platform, Magpie Invest, in Hong Kong next Tuesday.” Then on Time Square today, MICT launched a new billboard advertisement, further pointing to the fact that the launch will be taking place shortly.

With these two events in mind, I’m convinced that the launch will take place on Tuesday of next week. 

That’s huge!

This is the catalyst investors have been waiting for, and considering the short volume on the stock, there’s a strong chance that the catalyst will drive a short squeeze. However, the short squeeze isn’t the only reason to be excited. 

This Is Massive for MICT & Investors

Beyond the fact that the launch of Magpie is likely to drive shorts out of their positions, there’s tons of value to think about here. Keep in mind that there are very few companies that have the ability to offer stock brokerage services in Hong Kong, meaning that competition is slim. Moreover, those who are providing the services, most notably Futu Holdings (NASDAQ: FUTU) and Up Fintech Holdings (NASDAQ: TIGR) are highly valuable with respective market caps of about $16.6 billion and $2.3 billion. 

However, these platforms don’t hold a candle to what Magpie Securities is expected to be. First and foremost, the technology is expected to be state-of-the-art, offering features that are unavailable on any other platform. 

Not to mention, Magpie Securities is the wholly-owned subsidiary of MICT, meaning that data and profits will not need to be divided up between partners. The company owns all data and will take all profits from the platform. 

At the same time, MICT is by far the lowest valued company between the three, trading with a market cap of just $240 million. Not to mention, with multiple highly valuable assets on the books, including well over $100 million in cash, the stock is extremely undervalued at current levels. 

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Final Thoughts

No matter how you slice it, MICT is likely to make a run for the top relatively soon. With the Magpie Securities trading platform set to launch just around the corner, fundamentals that say the stock is highly undervalued, and shorts likely to be squeezed out of their positions, the potential for significant gains ahead is hard to ignore. 

Don't Miss the Next Big Story

Join our free mailing list below to receive real-time, actionable alerts!

CNA Finance is not an investment advisor or broker dealer. This article is the result of a financial relationship between CNA Finance and MICT. Trading in penny stocks involves significant risk and can result in the loss of capital.