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.
