Where next for Supply@Me Capital shares after gaining 1100% in August?

Supply@Me Capital shares have climbed more than 1100% throughout August. But what drove the bounce and will its share price see similar jumps this year?

The independent fintech and penny stock was trading at 0.05p per share at the start of the month and then shot up to a high of 0.8p on 18 August and is trading at 0.72p at the time of publication.

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 it’s 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 in a few easy steps:

1. Create an IG trading account or log in to your existing account
2. Enter ‘Supply@Me Capital’ 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