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Supply@Me Capital stock could rise amid institutional interest

The working capital solutions company and penny stock rallied more than 1100% in August, with the stock tapering off slightly since, though it stands to move higher as it seeks institutional investor interest.

  • Supply@Me Capital shares could move higher if it can secure institutional investor interest
  • The penny stock surged more than 1100% in August

Supply@ME Capital shares rallied more than 1100% in August, with the stock tapering off slightly since, though it stands to move higher as it seeks institutional investor interest.

At this stage, the fintech company said that it is focused on securing funding to support the financing of working capital solutions, with the company recently signing a formal alliance with Italian fintech marketplace Epic SIM for inventory funding and client company origination.

Supply@Me Capital is up 8% on Wednesday, trading at 0.52p per share, with the stock down 55% year-to-date.

What is Supply@Me Capital?

Supply@Me Capital provides a platform for businesses, across various sectors, to enhance their working capital positions and improve cash flow.

According to its latest trading update in July, the company’s average target client company typically has €100 million in revenue, with the average target size for each inventory monetisation transaction coming in at around €15 million.

The company’s portfolio of client companies has ‘continued to grow’ and is expected to increase significantly should its ‘Self-Funding transaction model’, involving two leading Italian banks, go ahead in Q3 2020.

‘The Self-Funding approach enables banks and other institutions to offer the SYME service direct to their customers, such that the banks and their client base can benefit from the systems, assessment and monitoring processes of the SYME inventory monetisation platform,’ Supply@Me Capital said.

As of 30 June 2020, the company has €1.43 billion in gross origination from 97 client companies.

The company’s business model and growth strategy has clearly caught the attention of investors and its the stock’s recent surge will likely attract more investment interest in 2020. But what does the future hold for Supply@Me Capital?

Supply@Me Capital: annual results

It is worth noting that volatility is high with penny stock investing, with investors likely to see some movement in the Supply@Me Capital share price ahead of its 2020 earnings in September.

Investors will be interested to see how the coronavirus pandemic has impacted the company’s performance this year, with Supply@Me clearly confident in the strength of its customer base and demand for working capital solutions amid the myriad of headwinds facing businesses in Europe.

‘Despite Covid-19 we still remain extremely confident for the future but as a result of the approximate three to four month delay to our business plan caused by Covid-19 we are having to push back our forecasts with a consequential impact on market expectations,’ the company said in its interim results in March.

Turnover in the twelve months to 31 March 2020 increased to £416,000, up from £241,000 a year prior, resulting in a profit of £26,000, down from £145,000 in 2019.

How to trade stocks with IG

Looking to trade Supply@Me Capital and other stocks? Open a live or demo account with IG and buy (long) or sell (short) shares using derivatives like CFDs and spread bets in a few easy steps:

  1. Create an IG trading account or log in to your existing account
  2. Enter ‘Supply@ME Capital PLC’ in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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