Mogo Finance Technology Inc (NASDAQ: MOGO) has had a pretty strong run in the market over the past few sessions. However, today, the stock is dipping a bit on the NASDAQ, leading many to wonder what’s coming ahead.
Nonetheless, this is a dip that you may want to seriously consider getting involed in. Today, we’ll talk about:
- The likely reason for Mogo’s decline in the market today;
- news that the company released in the pre-market this morning; and
- what we’ll be watching for ahead.
The Likely Reason That MOGO Stock Is Down
As mentioned above, Mogo Finance Technology has had a solid run in the market as of late. Since Friday, April 12, 2019, the stock has climbed from $2.30 per share to the current value of more than $3.30 per share.
A big driver of this growth was an announcement that the company would be merging with Difference Capital. The merger brings much needed funding to the balance sheet and monetizable assets. Moreover, the cost of the acquisition was approximately net 3.2 million shares; which at the moment is about fair value, but at the time of the acquisition, was a strong premium offered to Mogo.
Nonetheless, market movement tends to happen in ebbs and flows. With the incredible gains that we’ve seen from the company over the past week or so in mind, it only makes sense that some profit taking would take place.
That seems to be what’s happening today. Nonetheless, it’s likely that the company will quickly bounce back from today’s 2% or so drop, providing meaningful growth ahead. To understand why I have a bullish stance here, read my full report on MOGO here. It’s also worth taking a look at the stock on the TSX today as we’re seeing gains there, further validating my view on this dip.
Mogo Announces Coming Catalyst
In the premarket hours this morning, Mogo announced that its President, Greg Feller, will present at the Planet MicroCap showcase on Wednesday, May 1, 2019. Mr. Feller will also be conducting one-on-one meetings on May 2, 2019.
During the presentation, Mr. Feller will provide an overview of the Mogo technology platform and products. He will also be providing a detailed look at the company’s strategy to become the go-to financial app for millennials in Canada.
The presentation will be available at https://investors.mogo.ca/events/. If you would like to attend the presentation and meet with management, you can do so by signing up here.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on MOGO. In particular, we’re interested in following the story surrounding the company’s continued work to become Canada’s go-to financial app as with more than 800,000 members, the company is doing a great job of executing their strategy. Nonetheless, we’ll continue to follow the story closely and bring th enews to you as it breaks!
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