What's Behind The Recent Meteoric Rise Of Tingo Group

Key Points

• Tingo Group completed the acquisition of Tingo Mobile and Tingo Foods.
• Revenue increased 8,801% over the same period last year.
• YTD the stock is up 540%.

Tingo Group NASD: TIO is a global fintech and agri-tech company with operations spanning multiple continents. The company operates in Africa, Southeast Asia, and the Middle East. Tingo’s wholly owned subsidiary, Tingo Mobile, is a leading agri-fintech company in Africa. Along with Tingo Mobile, the company has other business verticals. TingoPay is a SuperApp that offers various B2C and B2B services. Tingo Foods is a food processing business that converts raw foods into finished products, and Tingo DMCC is a commodity trading platform. The company also owns and operates an insurance brokerage platform in China.

Formerly known as MICT, Inc., the company recently changed its name to Tingo Group, Inc., headquartered in Montvale, New Jersey.

The Recent Surge In Share Price

Tingo boasts staggering numbers as it relates to its recent share price performance. Last week the stock closed up 83.45% to bring its monthly performance to 200%. YTD, the stock is up 540%. 

After taking out the previous 52w high of $1.34, in April, shares of the company have been in a steady uptrend gaining over $500 million in market value.

Tingo Group Reports First Quarter Results

For the first quarter of 2023, Tingo Group reported significant revenue growth, amounting to $851.2 million. This figure represents a staggering 8,801% increase over the same period last year. The increase directly resulted from acquiring Tingo Mobile and Tingo Foods in December 2022 and February 2023.

The impressive results, primarily due to the successful acquisition of Tingo Mobile and Tingo Foods, were seen throughout the earnings reports. Net income for the first quarter was $176.7 million compared to a net loss of $8.7 million in the same period last year. At the end of the quarter, the company had approximately 780.2 million in cash and cash equivalents, an increase of $279.8 million over the previous quarter.

Once again, this increase is attributable to the successful acquisitions previously mentioned.

Tingo Group Milestones and Business Update

Tingo Foods celebrated the groundbreaking ceremony for a new $1.6 billion food processing facility in partnership with a construction company. Construction progress is on schedule, with the facility expected to open by mid-2024. In addition, Tingo Foods has partnered with Evtec Energy Plc to establish a $150 million net zero carbon emission solar plant, providing sustainable and cost-effective energy for the new food processing facility.

Tingo Mobile signed an exclusive agreement securing additional produce supply, warehousing facilities, and commodity trading opportunities for both Tingo Foods and Tingo DMCC. The Prime Commodity Exchange and All Farmers Association of Nigeria signed the agreement.

The group soft launched TingoPay Super App and Digital Tingo Visa Card, offering retail customers payment solutions, an e-wallet, and value-added services. The partnership with Visa enables merchant services for businesses, including Tingo Mobile’s farmers.

Tingo Group also stated that they have engaged with legal counsel and expert advisors to investigate market manipulation and unlawful naked short selling of their stock.

Should you be getting involved?

There should always be an element of concern and cautiousness when a stock enjoys a meteoric rise in a relatively short period. Unfortunately, that is the case with Tingo Group. While the unaudited financial earnings were impressive, the stock has approached short-term overbought territory, climbing 432% on the quarter. 

The stock is beginning to go vertical, with its daily range far exceeding its ATR, signaling a short-term top might be put in soon.

If you’re bullish on this company in the long term, you might want to see the share price digest the current move and build a consolidation while the moving averages flatten out. Such a move in the share price could signal price stability and fair value. 

With the fundamentally changing acquisitions only recently being completed and factored in, it could also be worthwhile seeking further financial releases by the company before jumping in.