MICT Stock Pops On Magpie Trading Platform Funding


MICT Inc (NASDAQ: MICT) is back on the way up this morning after having risen sharply in recent sessions. As investors patiently await the launch of the company's trading platform under the Magpie brand, news broke this morning indicating that the launch will come sooner rather than later. Here's what's going on:

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MICT Announces Magpie Funding

In a press release released earlier this morning, MICT announced that its board of directors has approved a $ 60 million capital injection into its wholly-owned subsidiary Magpie Securities. Magpie developed and will operate the company's Hong Kong trading platform.

In the press release, the company said the funding will come in two tranches, with the first being $ 30 million in equity. Then, after approval by the Hong Kong Securities and Futures Commission, the second tranche of $ 30 million will go to Magpie by way of an intra-group subordinated loan.

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

With the upcoming launch of our stock trading mobile app, the $ 60 million investment in Magpie will adequately capitalize the business to support our ambitious growth plans and enable our underlying clients to offer competitive margins and IPO financing.

This is a big deal

Today's press release was overwhelmingly positive. Keep in mind that there are three key factors that must be met for the trading platform to start and with today's news it seems like they are all coming together.

MICT primarily needed the Hong Kong license that was granted to it. In addition, the company needed a work platform that would offer a better experience than the few options already available, and as testing continues, this seems to work too. After all, in order for Magpie to work efficiently, it takes capital. Finally, funding must be available for margin loans. With today's announcement, the financing is now complete.

What does it all mean?

The company is well on its way to launching a trading platform very soon, a move that is likely to result in significant growth in sales and profitability.

This undervaluation won't last forever

There is no question that MICT is undervalued. Just take a look at comparable company reviews:

  • Futu stocks (NASDAQ: FUTU). The only other competitor that actually has the Hong Kong license and operates its own trading platform in the region is Futu. The company is valued at more than $ 22 billion.
  • Upward fintech holdings (NASDAQ: TIGR). Failed to get the Hong Kong license, Up Fintech, working with a New Zealand license and with partners involved in profits and data access, instead of using its own platform, it operates a white label solution. Still, the company trades on a market cap of nearly $ 4 billion.
  • Snowball. Snowball is expected to get on the list anytime now with an IPO price of over $ 5 billion. Interestingly, the company doesn't function in the same way as the above two, nor will it be a direct competitor to Magpie as it serves Chinese customers in America.
  • Webul. Finally, Webull recently completed a $ 10 billion private fundraising for its Hong Kong platform.

Right now, these are MICT's only four competitors in the industry, and they all trade billions in valuations. In addition, its closest competitor, FUTU, is trading in the tens of billions of dollars. MICT, on the other hand, trades around a quarter of a billion dollars in market cap, despite having its own trading platform, Hong Kong license, and excellent track record that will allow it to get into the market and operate for some time to come , without problems. If that's not a definite undervaluation, I don't know what is!

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The bottom line

The bottom line here is that MICT is doing, and doing it well. The company outlined a plan to launch the mobile trading platform by late June or early July, and it is clear from the news released today that the company is well on its way to achieving that goal. Furthermore, if there is a significant undervaluation, the opportunity here is difficult to ignore. All in all, if you haven't been seeing MICT, you're missing out.

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

https://thedailytradingnews.com/mict-stock-pops-on-magpie-trading-platform-funding/

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