Supply@ME Capital’s share price is flying. Here’s what you need to know

Supply@ME Capital’s share price is rising after the company signed an alliance with Epic SIM. But that’s not the only interesting development here.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Supply@ME Capital’s (LSE: SYME) share price is on the rise again. This morning, the AIM-listed small-cap stock was up more than 10% at one stage.

Here, I’ll look at why Supply@ME Capital shares have popped. I’ll also highlight another interesting development investors should be aware of.

Why Supply@ME Capital’s share price is up today

The reason its share price surged higher is the FinTech company announced this morning it’s signed a formal business alliance with Epic SIM for inventory funding and client company origination. Epic is an Italian investment company and FinTech platform for working capital solutions. It enables small- and medium-sized enterprises to present their development projects to qualified investors.

Supply@ME Capital says this alliance will create a new sales channel for the company, including client company origination and inventory funding. Additionally, it says Epic will perform part of the due diligence process in order to increase the scalability and efficiency of Supply@ME’s onboarding process. The alliance is targeting 75 client companies originated by the end of 2020 and 250 during 2021.

This certainly looks to be a positive development for Supply@ME Capital. As the company says, this alliance has helped it reach “a new milestone in relation to its business plan goals.”

It’s also worth noting the company advised this morning it “expects to make further announcements shortly” in relation to the inventory funding process. So there could be more exciting news on the way.

Insiders are loading up on SYME shares

Another development that looks interesting here is recent insider buying. When I last covered Supply@ME Capital on 19 August, I noted CEO Alessandro Zamboni had just purchased a ton of SYME shares (1.63bn shares at a price of 0.6756p per share). Since then, insiders have continued to load up on shares.

Indeed, regulatory filings show that on 19 August, chairman Dominic White purchased 220m shares at a price of 0.7p per share. Then, on 27 August, Zamboni purchased another 660m shares at a price of 0.6945p per share.

Overall, insiders spent around £17m on Supply@ME shares in the space of just a few weeks, with Zamboni boosting his holding by nearly 40%. This pattern of insider buying looks quite bullish, in my view. Clearly, these top-level insiders are confident about the future.

Would I buy Supply@ME Capital shares today?

Both today’s announcement and the director dealings are encouraging. The story continues to look very interesting, in my opinion. 

That said, I’m still hesitant to invest given that the share price is up more than 1,000% in a month, the company now has a market-cap of £220m+, and this is a very early-stage business with no profits.

So, for now, Supply@ME Capital shares will remain on my watchlist. All things considered, I think there are better small-cap growth stocks to buy at the moment.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Edward Sheldon has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

US Stock

The Nvidia share price falls! Here’s what I think happens next for the S&P 500

Jon Smith reviews the overnight results from Nvidia and explains why this could stall the S&P 500 performance through to…

Read more »

Investing Articles

Down 15% today, is this FTSE 100 share too cheap for me to miss?

JD Sports' share price has tanked after the FTSE 100 share released another profit warning. Is this the opportunity I've…

Read more »

Investing Articles

Up 8% today, is this FTSE 100 growth stock a slam-dunk buy for me?

Halma's share price is soaring thanks to another headline-grabbing trading update. Is the FTSE 100 stock now too good for…

Read more »

Investing Articles

With a P/E ratio of just 10.5 is now a brilliant time to buy a cut-price FTSE 250 tracker?

Harvey Jones says a recent dip in the FTSE 250 leaves the index trading at bargain levels. One stock in…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

To build a passive income flow, I’d follow this Warren Buffett approach

Warren Buffett has set up passive income streams most people can only dream about. Our writer sees some practical lessons…

Read more »

Growth Shares

As the boohoo share price falls, could it become a penny stock in 2025?

Jon Smith outlines some of the recent problems involving the boohoo share price and considers if things could get even…

Read more »

Young Asian woman with head in hands at her desk
Investing Articles

Here are the worst-performing FTSE 100 shares over the last 5 years

These five FTSE 100 shares have been complete duds over the last half decade. But is there potential for a…

Read more »

Investing Articles

Nvidia stock has tripled this year! Can it keep rising?

Nvidia's latest sales update showed strong growth and the stock's been on a tear so far in 2024. So is…

Read more »