Hey guys, this can be a extra intensive DD on my half. I’ll hyperlink the primary half. Resulting from climate circumstances in my space (Texas) it took me longer than I might like. Right here it’s get pleasure from!
Pt 1: https://www.reddit.com/r/trakstocks/feedback/lm5hps/mict_potential_for_hyper_growth/
Firm: Micronet Enertec Applied sciences inc.
CEO: Darren Mercer (Extra on this later)
Present inventory worth: $2.52 (2/20) up from $2.33 from final submit.
Market Cap: $198.54M (2/20) up from 162M from final submit.
AVG Vol (Three months): 3.56M , AVG Vol (10 day): 25.17M
Shares Excellent: 91.05M
% Held by insiders: 48.05%
% Held by establishments: 4.47%
Quick %: 0.94%
Company Overview from web site: https://buyers.mict-inc.com/overview/default.aspx
MICT Inc. operates via its subsidiaries, International Fintech Holdings Intermediate Ltd and Micronet Ltd.
International Fintech Holdings makes use of its versatile proprietary buying and selling know-how platforms to serve a spread of excessive development sectors within the fintech house. Major areas of focus embody on-line brokerage for equities buying and selling, on-line funding and wealth administration companies, gross sales of insurance coverage merchandise and buying and selling in sure commodities. International Fintech Holdings trades in a number of high-growth international markets together with Asia, the place the Firm advantages from a considerable propriety database of customers and in addition works with numerous main on-line portals and huge industrial companions.
Micronet operates within the rising telematics and industrial Cell Useful resource Administration (MRM) markets, primarily in america and Europe. Micronet designs, develops, manufactures and sells extremely modern cellular computing gadgets and software program that present fleet operators and subject workforces with computing options
Article that caught my consideration: https://cnafinance.com/mict-stock-a-slew-of-catalysts-on-the-horizons/
Current Institutional Possession: https://fintel.io/so/us/mict?d=2020-12-31 BIG in my view.
Inexperienced is a New place and pink is a closed one.
Closing of latest providing:
This was a latest providing to boost some capital. I’ll assume it is for his or her latest transfer and enterprise bills. The prospectus states that they cannot do one other providing for a minimum of 90 days (Three Months). Those that did purchase warrants can’t promote for a minimum of 6 months, and have an train worth of $2.80.
https://www.globenewswire.com/news-release/2021/02/10/2173312/0/en/MICT-Indicators-New-Monetary-Providers-Partnership-for-Commodity-Buying and selling-and-Futures.html
Shanghai Petroleum and Pure Gasoline Buying and selling Middle (the “Alternate”). They supply pioneering monetary companies in help of the platform’s company and authorities prospects who’re estimated to make up roughly 20 p.c of China’s oil and fuel commerce.
Below the settlement, MICT will act as a strategic third-party accomplice to the Alternate’s purchasers to offer commerce execution, margin financing and commerce clearing capabilities. The group will initially concentrate on companies for purchasers buying and selling futures and commodities contracts in China’s rising, multi-hundred-billion-dollar oil and fuel markets. In keeping with the China Central Administration of Customs China, crude oil imports reached RMB 1,669,697,209,337 or $259 billion in 2019. Pure fuel imports had been RMB 287,298,753,366 or $44 billion.
MICT’s subsidiary will earn commissions and transaction charges associated to commerce clearing, in addition to a lot bigger margin financing charges. Whereas the Shanghai alternate will share a small share of transaction income, MICT will obtain all the significantly bigger margin finance charges. As well as, the Firm has recognized an skilled administration staff with deep sector information to supervise the platform launch and operations.
The subsidiary will initially service a number of hundred of the Alternate’s roughly 2,400 prospects, together with provincial authorities departments, state-owned enterprises and huge firms, with the intention of accelerating its buyer base all through the next quarters.
“Our key strategic alliance with the Alternate drives high-margin income development potential for MICT via each per contract commissions and the profitable margin financing related to leveraged futures and commodity merchandise buying and selling, amongst different associated service charges. The truth that our purchasers are comprised of presidency and government-backed entities, amongst others, gives a component of low monetary default threat, supported partially from the robust monetary relationships Xinhau brings to the enterprise.
As well as, we consider the Xinhau platform will enhance its market share of oil and fuel revenues because of a nationwide rollout via the hyperlink to the commodities and futures alternate. We additionally anticipate extending our commodities and futures buying and selling enterprise past oil and fuel and into valuable metals, different metals and meals and agriculture merchandise over time, every of which is a major market in its personal proper,” commented MICT’s CEO Darren Mercer.
“This additionally helps our upcoming inventory buying and selling platform and associated companies, which drive robust technological and monetary companies worth propositions. As we have now mentioned during the last a number of weeks, we’re already receiving vital income from our insurance coverage enterprise and anticipate a fast rise within the coming months. As well as, we’re anticipating the launch of our inventory buying and selling and wealth administration companies platform within the coming weeks. With the belief of our commodities and futures alternate companies, we consider we provide a most complete monetary know-how and companies providing in China, which is supported by an ever-growing database of customers. We look ahead to the continued development of all three enterprise verticals,” Mr. Mercer concluded.
The Firm believes the platform will probably be prepared for launch throughout the second quarter of 2021 and additional expects to begin income era quickly thereafter.
Darren Mercer’s earlier BNN Know-how suspension, cancelation, and controversy: https://markets.ft.com/information/announce/full?dockey=1323-13350378-5DEH5GSM5IEK085J4LGC4PBGVV
What I discovered in regards to the BNN controversy: The CFO on the time had some allegations towards Mercer. The allegations appear unknown. Additionally discovered Mercer took a bonus/mortgage from the corporate BNN, that will haven’t been declared and desires some compensation. His suspension from CEO was lifted and and as a substitute has taken up a brand new place of Director of Strategic Partnerships and Enterprise Improvement. So sure there’s cause to be suspicious, having a previous like this. I want I might discover out extra on the scenario. Nonetheless I do know a whole lot of corporations and CEO’s undergo some scrutiny in some unspecified time in the future.
MICT December shareholder webcast:
On this webcast throughout the Q&A portion @ 11:30 the primary two questions are in regards to the new buying and selling platform. After all individuals need to carry up a FUTU comparability. They do consider that they’ve some aggressive edge over them however didn’t need to disclose it right now. A bunch are numbers are thrown round so far as total market dimension and development. I recommend you pay attention in the event you think about taking this critically. Granted all the things you hear from the corporate itself is at all times going to be biased. So at all times take that into consideration.
Earnings: Ought to be later subsequent week. Yahoo says Feb 18, 2021 – Feb 26, 2021.
New Verticals: Insurance coverage, Buying and selling Platform, tech (Smartcam)
On-line Insurance coverage Platform:
Because of the partnership with the incoming staff, MICT has created a brand new insurance coverage division underneath GFHI which is wholly owned by GFHI/MICT and gives a pretty incentive plan for its administration. Upon attaining the primary yr’s manufacturing goal, which is to ship in extra of $250,000,000 price of premiums at a gross margin of greater than $10,000,000, and considerably larger targets in years’ two and three, the insurance coverage administration staff can earn money bonuses and as much as 40% of the inventory of such insurance coverage subsidiary
The possession announcement of GFHI comes on the heels of the just lately introduced partnership with one of many nation’s largest cost service suppliers in addition to the signing of numerous insurance coverage company contracts being accomplished. China’s nascent marketplace for insurance coverage merchandise is estimated to be the second largest on the planet and has been forecasted to overhaul the U.S. market by the mid-2030s. On-line insurance coverage premiums in China are forecasted to develop 41% yearly between 2019 and 2024, with an estimated market dimension to succeed in $2.36 trillion by 2032.
Enormous incentives for the insiders. Enormous potential for development.
MONTVALE, N.J., Jan. 17, 2020 /PRNewswire/ — MICT, Inc. (Nasdaq: MICT) (the “Firm”), introduced right now that Micronet Ltd, an entity by which MICT owns 30%, has acquired U.S. Federal Communications Fee (FCC) authorization for its new superior video telematics digital camera, The Sensible Digital camera (“SmartCam”) for two.4GHZ and 5GHZ. With the launch of SmartCam, Micronet is penetrating the video telematics market, one of many quickest rising segments within the broader telematics market.
The primary mannequin in Micronet’s new, extremely superior video telematics digital camera product line, SmartCam gives utilizing amongst different third events applied sciences, subtle video analytics for fleet managers. SmartCam integrates driver going through cameras, highway going through cameras, car mechanical and working information, car location, and a strong telematics on-board pc, enabling native processing of synthetic intelligence (AI) and picture processing algorithms
Truthfully this is not one thing I’ve regarded too far into up to now. It looks as if they do have already got a giant purchaser(5,00+ items) . I must do some extra digging on this.
Value Targets: CNN $6 https://cash.cnn.com/quote/forecast/forecast.html?symb=MICT#:~:textual content=MICT%20Inc%20(NASDAQpercent3AMICT)&textual content=The%201%20analysts%20providing%2012,the%20final%20worth%20of%202.48.
Current relocation: Firm simply moved all the things to a brand new Hong Kong workplace.
Previous CFO: Arie Rand. He was beforehand the CFO of Edwards Lifesciences from 2013-2020. He was the performing CFO for MICT earlier than the latest transfer to HK. Solely reasoning for leaving I have been capable of finding is the relocation. I am simply making the belief that he did not need to relocate. He did very nicely with Edwards Lifesciences, so I assume there was one thing that attracted him to MICT. Nonetheless might increase suspicion.
Value Targets: I’ve seen $6 from CNN, and $10-12 from Vanguard and different analysts. For me personally if all the things can work out nicely It may very well be a protracted maintain for me. If this turns into a multi billion greenback firm PT may very well be manner above $20 for me.
Disclaimer: I simply occur actually like this inventory if all the things goes the precise manner. Regardless I’ll proceed to analysis it and proceed to both replace or do different DD’s on it because it progresses. It has been a lonnnng week for me and its late so I am drained. I’ll attempt to repair any errors quickly.
As at all times please do your individual DD and do not soak up all recommendation from random web strangers. I’m very a lot open to dialogue. Please go away any feedback or query whether or not or not it’s good or unhealthy on the topic.