This is just the beginning

0

MICT Inc (NASDAQ: MICT) is heading for the top again today, and the gains are likely far from over. The catalyst that pushed the stock to the top this morning was announced after hours yesterday when the company said it had been added to a popular U.S. index.

Here’s what’s going on and why the MICT is probably gearing up for a big race ahead.

Stop wasting your time! Start finding winning trades in minutes with Business ideas!

MICT added to an MSCI index

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

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

Our addition to the MSCI index strengthens the Company’s reputation with institutional investors. The index is widely recognized as a benchmark for global institutional investors to optimize their investment portfolios. The selection of MICT by MSCI, following a detailed selection process, is a tribute to what we have achieved in the short time since our transition to the FinTech sector in September 2020.

This is huge news

The news released last night is overwhelmingly positive. Think about it, any index fund, ETF, or mutual fund that invests in the MSCI USA Micro Cap Index will now have to buy MICT stocks in order to keep their portfolios balanced.

As a result, the company is likely to experience a significant recovery in institutional interest, which is great as it will lead to increased demand for the company’s shares. As you know, the stock market is a system of supply and demand. Thus, this increased demand will tip the balance of supply and demand, possibly leading to significant growth.

Just the tip of the iceberg

When the MICT released its most recent quarterly financial results, it became clear that the company was in full swing, delivering on promises it made to investors. Here’s a quick recap:

  • Insurance. The company’s insurance business generated approximately $ 8.2 million in revenue, representing the lion’s share of revenue and significant year-over-year and quarter-to-quarter growth. other. Moreover, it is worth mentioning that in September of last year the company started to enter the fintech space and previously had no insurance income. Not to mention that the authorization to sell insurance products nationwide was only obtained very recently. So, we are only seeing the beginning here and insurance revenues are likely to increase dramatically.
  • Raw materials negotiation. MICT is working with the Shanghai Oil and Natural Gas Exchange and will soon handle around 20% of the product order flow going through the exchange. This is a huge opportunity to further improve revenue growth.
  • Exchange platform. Finally, MICT is working on an equity trading platform that will launch in Hong Kong relatively soon. Beta testing is ongoing and at an advanced stage, with a launch slated for late June or early July.

Again, this is a company that just entered the fintech space in September of last year. It is already generating significant revenue and is in the final stages of testing before launching more products with the potential to generate significant revenue.

Stop wasting your time! Start finding winning trades in minutes with Business ideas!

The bottom line

The gist here is simple. When we talk about MICT, we are talking about a company that keeps all of its promises to investors. As a result, it has positioned itself on a benchmark micro-capital index, has generated significant income in less than a year of operation and is expected to experience significant growth in the future. Overall, this stock is hard to ignore.

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 lead to significant losses.

Share.

About Author

Comments are closed.