FingerMotion, Inc. (NASDAQ: FNGR) is a Chinese tech company with a main focus on mobile payment and recharge platform solutions. Over the past 2 weeks, FNGR stock has been one of the hottest China tech stocks thanks to its parabolic run from $.62 to nearly $10 over that period. Based on this run, many investors are speculating FNGR could be a prime short squeeze candidate in the short term. Despite this, FNGR could be one of the China tech stocks to watch in the long-term thanks to its ongoing endeavors in the fintech industry.
FNGR Stock News
Insurance Technology Platforms
As a leading provider of top-up and SMS service providers in China, FNGR has the potential to realize major revenues by monetizing its database of more than 560 million users. For this reason, FNGR developed its technology platform – Sapientus – to analyze these data and offer these analytics to advertisers. To develop this platform, FNGR has been working with a number of partners over the past year to interpret consumer insights via big data algorithms and applying behavioral analytics. In this way, Sapientus could help in developing new innovations and commercial applications in the fintech sector.
With this in mind, FNGR is already in an agreement with major Asian reinsurer Pacific Life Re to develop its model. This collaboration has led FNGR to advance its algorithms with auxiliary data which would add more capabilities to its analytics. As a result, these capabilities would lead to more robust results for commercial applications.
In addition to this collaboration, FNGR has been in a research alliance with global reinsurer Munich Re to enhance understanding of morbidity and behavioral patterns in the Chinese market. Through this collaboration, both companies are aiming to add value for both insurers and insurance customers by offering better technology, products, and customer experience. By combining Munich Re’s experience and Sapientus’ capabilities, FNGR could help insurers make better claim management decisions while increasing underwriting efficiency. At the same time, FNGR could allow insurers to have a better understanding of potential behavioral risks and risk tendencies. In light of this, FNGR stock could be one of the most valuable China tech stocks as its platform could revolutionize the insurance industry.
Meanwhile, FNGR also has a risk rating services platform for the insurance industry built on an API integrated with its partners’ core systems. This API is also linked to a data repertoire and analytic framework that provides insurance companies with real-time rating feedback. Given the potential of this platform, FNGR is continuously upgrading and enhancing the API to capitalize on more commercial opportunities with its partners.
On that note, Sapientus has already been granted 7 patents by the National Copyright Administration of China (NCAC) for its algorithms, technological infrastructure, and insurance applications. As these platforms are based on extensive research with major players in the insurance industry, FNGR could be one of the China tech stocks poised for significant growth upon the roll out of these platforms.
Device Protection Insurance
As for its upcoming core business, FNGR launched its mobile device protection products in China which are being distributed by Chinese carriers as embedded, value-added features to their plans. These products will be launched first in the province of Henan which has a mobile subscriber base of 90 million. Meanwhile, the company plans for further rollouts in other provinces over the coming months targeting 1.2 billion subscribers since these products are set to be offered through China Unicom and China Mobile who dominate the Chinese market. Based on this, FNGR could be poised to realize record revenues in future if it manages to secure a significant share of these markets.
With this in mind, FNGR has a competitive advantage in the Chinese market as most mobile device protection products in China are limited to broken screen protection. Meanwhile FNGR’s products include three levels of protection including screen damage, mechanical breakdown, and device trade-in solutions. In light of this, FNGR’s products could witness high demand once it becomes available in all Chinese provinces.
Looking to leverage its offerings, FNGR partnered with a globally renowned, NYSE-listed Fortune 500 insurance company. Through this partnership, FNGR could significantly improve its brand awareness since it would be aligned with a major player in mobile protection products. Considering the company’s focus on this business, FNGR could be well-positioned for financial growth in the future – making it one of the China tech stocks worth watching in the long-term.
To facilitate the roll out of these products in China, FNGR entered into a funding agreement with Lind Global Fund II, LP to receive $4 million in gross proceeds. While these funds will be mainly allocated to fund the mobile device protection business, FNGR also intends to use these funds in multiple high growth initiatives currently underway. With the company securing this pivotal funding, FNGR stock could be one of the China tech stocks worth holding onto for the long-term as it could soar in the future.
FNGR Stock Financials
According to its Q1 report, FNGR’s assets declined to $9.2 million compared to $10.3 million in the previous quarter. However, FNGR’s cash on hand increased from $461.0 thousand to $805.5 thousand. Meanwhile, FNGR reported a slight increase in liabilities to $5.4 million from $5.2 million in Q4. As for revenues, FNGR witnessed a decline as it reported $4.8 million compared to $5.9 million a year ago. At the same time, operating costs increased to $1.8 million from $1.4 million last year. Based on this, FNGR’s net loss increased from $909.5 thousand to $1.4 million.
@BeginnerInvest4 is bullish FNGR could run to $10.
FNGR stock is currently trading at $7.38 and has supports near 6.84, 4.71, and 1.48. Meanwhile, the stock shows resistances near 8.07 and its 52-week high at 9.36. As one of the hottest China tech stocks, FNGR soared nearly 1400% over the past 2 weeks and continues to gain traction among investors.
FNGR has recently retested its resistance multiple times without breaking through that level which could indicate a drop near the support in the near term. However, such a drop could be momentarily as investors have been willing to add shares near the support recently. Considering that the stock is trading above its MAs and VWAP, FNGR could be poised to continue running this week. However, it should be noted that there is a gap near $3.5 that could be filled in the near future which could present an entry point for bullish investors.
Accumulation is holding steady after a recent downward trend thanks to investors taking profits as the stock ran to nearly $10 and the MACD is bearish. The RSI is holding at 56 which could indicate a strong run in the near term. As for its share structure, FNGR has an OS of 42.8 million and a float of 23.6 million.
FNGR Stock Forecast
While FNGR is gaining investors’ attention thanks to its impressive run over the past 2 weeks, the company’s fundamentals offer an intriguing investment opportunity for investors. Currently, FNGR is working to make mobile device protection insurance its core business. Considering that this market is already worth $10.6 billion annually in China, FNGR’s revenues could be well-positioned to receive a major boost as the company will offer its products through major carriers in China.
Moreover, FNGR’s insurance technology platforms could position the company as a global leader since Sapientus’ capabilities could revolutionize the insurance industry. With the company working with global leaders in the insurance sphere to develop these platforms, FNGR could be set to secure contracts with other major insurers which would increase the stock’s value significantly. In light of this, FNGR stock could be one of the China tech stocks to watch closely over the coming months in anticipation of the roll out of its new products.
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