In a little over six weeks, shares of mCloud Technologies Corp. (TSXV:MCLD) (OTCQB:MCLDF) have gained 57% value. This week alone, the stock jumped 14.4%.
This incredible run has driven the price up to $6.27, very close to its 52-week high of $6.50.
While this might appear to indicate a coming reduction, all technical indicators point to MCLD gaining even more value before the stock dips. Let’s take a look at why MCLD was such a big winner this season and where exactly it stands to go from here.
mCloud Technologies Receives Multiple BUY Ratings
Based on an algorithm that takes into account popular technical indicators—such as moving averages and oscillators—TradingView’s technical analysis had returned a “BUY” rating for mCloud Technologies (TSXV:MCLD) (OTCQB:MCLDF).
Notably, this rating is led by 15 positive moving averages pointing to a “STRONG BUY” position.
In addition, mCloud Technologies (TSXV:MCLD) (OTCQB:MCLDF) has received a “STRONG BUY“ recommendation from Investing.com’s Technical Analysis.
This enthusiastic recommendation breaks down into 12 positive moving averages and 10 positive technical indicators. No element of this technical analysis points to a “sell” position.
What’s more, Morningstar’s analysis puts mCloud Technologies’ (TSXV:MCLD) (OTCQB:MCLDF) fair value at $6.96. This indicates that, from the current price of $6.27, MCLD shares are trading at a 10% discount.
Finally, two Wall Street analysts have offered mCloud Technologies (TSXV:MCLD) (OTCQB:MCLDF) an average 12-month price target of C$7.00. This would represent a slightly higher upside of 11.6%.
So why is The Street so bullish on MCLD? The company has been pretty busy lately, so let’s dive into the news.
mCloud is Cash-Rich and Well-Positioned
mCloud made two major announcements this week, both of which indicate a promising future for the asset management company.
First, the company closed its acquisition of Atlanta-based 3D technology firm Construction Systems Associates Inc (CSA).
mCloud Technologies (TSXV:MCLD) (OTCQB:MCLDF) Chief Growth and Revenue Officer, Costantino Lanza, explained the move:
“This acquisition further positions mCloud to become one of the largest providers of 3D asset management capabilities in the nuclear power industry in North America. The combination of CSA’s robust 3D capabilities and our AssetCare platform enables us to deliver powerful 3D Digital Twins to our process industry customers at oil and gas, petrochemical, LNG, and pipeline facilities worldwide.”
Currently, more than 80% of all nuclear plants in the US rely on CSA-provided technology, which helps facilitate plant operations. Some of the company’s clients include energy giants Exelon (NYSE:EXC) and Dominion Energy (NYSE:D).
Second, mCloud Technologies (TSXV:MCLD) (OTCQB:MCLDF) generated C$1,831,500 by offering 457,875 special warrants at a price of C$4.00 each.
This was the fourth and final tranche of a larger offering that, in total, has generated C$13,331,500 for mCloud. The net proceeds will be used for working capital and general corporate purposes.
This one-two punch from mCloud has drawn a lot of attention from Wall Street and boosted investor confidence. Not only is the company well-funded, but it is also expanding its asset management capabilities.
It’s clear that mCloud is making good on its goal to create a more efficient future by getting the most out of critical energy infrastructure. For more updates from this fast-moving company, keep watching this space.
Featured image: DepositPhotos © denisismagilov