The Motley Fool

Interested in the [email protected] Capital share price? Here’s what you need to know

Image source: Getty Images

The [email protected] Capital (LSE: SYME) share price has surged in value during the past month. Shares in the small-cap have risen around 1,000% over the past four weeks.

This performance has put the company on the radar of most small-cap investors. The improving investor sentiment towards the business could send the [email protected] Capital share price even higher in the near term.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

If you’re interested in owning a share of this high growth small-cap, here’s what you need to know before investing. 

Time to buy the [email protected] Capital share price?

[email protected] Capital started its life as Abal Group. Following the completion of the disposal of its core operating business (known as Imaginatik), the firm became a cash shell and dealing in its shares was suspended.

Abel changed its name earlier this year after the company agreed on the acquisition of [email protected] Srl. Trading in its shares has since resumed.

[email protected] is an early-stage financial technology, or FinTech business. It operates a technology platform that enables manufacturing and trading customers to improve their working capital position by releasing capital from their inventory stock.

The business model is similar to other peer-to-peer lenders. The company matches capital invested by its inventory funders to enterprises that need money. The platform earns a fee on the income generated from the loans and “inventory monetisation“.

As the business is only just getting started, it isn’t easy to figure out how much the [email protected] Capital share price is worth. That said, it’s clear the company has tremendous potential.

It originated more than €300m of prospective “inventory monetisation transactions” in its first six months of operation. Meanwhile, it’s estimated that the total size of the inventory financing market is €2trn. 

If this FinTech business can grab just 1% of the total addressable market, the [email protected] Capital share price may be able to continue its impressive performance. That 1% could mean €200bn of prospective inventory monetisation transactions for the firm. By comparison, the current market capitalisation of the group is just over £100m. 

Therefore, the [email protected] Capital share price looks cheap based on its potential market.

Diversification is key

However, it could be some time before the company reaches this point. Small-cap companies are notorious for missing their targets. Investors shouldn’t overlook this fact when evaluating [email protected], no matter how attractive the opportunity might seem.

Many peer-to-peer companies have failed to live up to expectations in the past. Some of these companies have caused substantial losses for their shareholders and funders on platforms. 

As such, it may be best for investors who want to own the [email protected] Capital share price to do so as part of a well-diversified portfolio. The company’s potential market is enormous. But we can’t overlook the fact that so many peer-to-peer companies have struggled to make it to the big time over the past decade.

Owning the stock in a diversified portfolio would allow shareholders to benefit from any upside while limiting downside risk.

And if you're looking for other high-growth stocks to own alongside [email protected] Capital in your portfolio, our favourite growth stock on the market is outlined in the report below.

A Top Share with Enormous Growth Potential

Savvy investors like you won’t want to miss out on this timely opportunity…

Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!).

Not only does this company enjoy a dominant market-leading position…

But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And here’s the really exciting part…

While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021.

Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge!

Rupert Hargreaves owns no share 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.

Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.