RE:ALY and Torrent CapitalAnyway, I don't know how I never came across Torrent Capital's holdings of ALY until now.
The have some good info on ALY if you look through the most recent versions of their Quarterlies and MDAs.
https://torrentcapital.ca/investors/financial-reports/ Most recent info from MDA below...
AnalytixInsight (“ALY”)
ALY is an artificial intelligence, machine-learning based fintech company headquartered in Canada. The company’s fintech solutions are used by The Wall Street Journal, Morningstar, Refinitiv, and Intesa Sanpaolo, to name a few. ALY is currently comprised of three operating divisions: Capital Cube, Marketwall and Euclides Technologies.
CapitalCube.com, is a financial portal providing comprehensive company analysis including on-demand fundamental research, portfolio evaluation and screening tools on over 50,000 global equities and North American exchange traded funds. CapitalCube provides content to financial portals such as Refinitiv and the Wall Street Journal.
MarketWall is a 49%-owned fintech subsidiary that develops stock-trading, research solutions and roboinvestment advisory as part of a fully integrated ecosystem of Smart Devices. MarketWall is defining the future of stock-trading and wealth management with all-in-one solutions that include trading, quotes, research and robo-investing. MarketWall is co-owned with Italian bank Intesa Sanpaolo.
Euclides Technologies is a Workforce Optimization subsidiary led by a team with decades of experience in developing and implementing software solutions for global corporations. Euclides is developing AI-based solutions for the field service industry to predict outcomes, scan big-data for troubling alerts and generate meaningful insights for large corporations. We anticipate a significant re-rating in ALY as its online discount broker and robo-advisor, MarketWall, commences operations after years of development. Marketwall recently received regulatory approval from the Italian Regulators (CONSOB) for its European online financial broker InvestoPro.
We anticipate that Intesa Sanpaolo will soon begin to migrate a portion of its online banking clients, currently in the area of 7 million users, to the InvestoPro platform. While it is unclear how many users will move to the platform, it is reasonable to assume that the number will not be trivial. Given that fintech comparables trade at $350- $1,000 per user, one can quickly arrive at a healthy valuation for MarketWall.
ALY currently trades at a $50 million market cap, which is very modest in relation to the growth inherent in MarketWall, accelerating revenue growth in its Euclides Technologies division and the increasing strategic importance of Capital Cube to its high-profile partners like Refinitive.
--------
ALY’s stock price was down 34.0% during the second quarter as compared to the S&P/TSX Small Cap Index which rose 8.7%.
ALY made significant operation and technical progress in Q2 with key partners. ALY’s partner, Intesa Sanpaolo, will be introducing InvestoPro to its customers as the bank’s online advanced digital trading platform offering financial analysis, news, research, educational formats, and other exclusive content aided by artificial intelligence attributes provided by ALY. Current customer stock trading accounts will be transitioned to InvestoPro with the support of Intesa Sanpaolo. As a Samsung Electronics partner, the InvestoPro app is also preloaded on certain Samsung devices in Europe.
Intesa Sanpaolo owns 33% of MarketWall and is one of the top banking groups in Europe with approximately 12 million customers, 3,700 branches throughout Italy and 7 million users on its online banking app. It has emerged as Italy's first digital bank and is investing €2.8 billion in a strategic plan to increase the bank’s digital business to 70% with mobile being at the heart of its digital ecosystem. Accordingly, Intesa Sanpaolo will likely begin to migrate its client base to the newly licenced InvestoPro platform which should lead to a significant re-rating of the ALY share price given that comparable fintech companies are valued at $350-$1,000 per user.
At the end of Q2, ALY announced a $9.3 million overnight marketed equity offering at $0.70/unit with a half warrant exercisable at $0.90 for a period of three years. The net proceeds from the offering are expected to be used for its digital stock trading platform development and North American deployment of MarketWall products, acquiring servers and data for the implementation of real time stock quotations and for general working capital purposes.
Torrent expects considerable news flow moving forward as MarketWall adds users and tALY explores strategic options that may include an expansion into North American markets with or without a strategic partner. MarketWall would then be the only independent digital broker and robo-advisor to operate on both sides of the Atlantic.
ALY has a $50 million market cap which is very modest in relation to the potential size MarketWall’s user base and when compared to other mature digital brokers that have market caps far north of $1 billion.