The Pareteum Corporation (NYSE:TEUM), which focuses on mobile and other forms of telecommunications software services, was recently awarded a three-year contract with a European IoT (Internet of Things) global provider. This contract will allow the IoT provider to broaden its reach through the use of Pareteum’s Global Mobility Cloud which will help to connect IoT devices. For Pareteum, this contract means that the company will receive platform fees and transactional usage fees for each device that is connected, giving the company a steady and decent cash flow to work with.
Despite this news, Pareteum’s stock has actually gone down during trading today. At the time of writing, the stock is going for $1.52, which means that it is down 7.88%, or $0.13, on yesterday’s close of $1.65.
Pareteum has been making many moves recently that look like the they should be positively affecting the company, yet seem to not be having an actual effect on the stock. On December 19, Pareteum announced that it had fully paid off its debt from Atalaya Capital Management and from Corbin Capital. From this, Pareteum’s growth prospects should have increased because its cash flow has now improved, but so far, this hasn’t happened.
All hope isn’t lost yet, however. On the whole, Pareteum’s stock performance has been good for the past quarter. It was up 120% for the week, 103.70% for the month, and for the quarter the stock was up 60.19%. Maybe this current dip is only temporary. While this isn’t the highest the stock has been this year, the stock does look to be growing again since the latter half of this month, with December 15 in particular.
Pareteum saw its largest spike in five years happen in February of this year when the stock reached a high of $2.29. This occurred shortly after hitting its lowest mark in five years in January, which was $0.12. Overall, it looks like the stock is climbing now since its drop at the beginning of the year. So even though the stock is currently down, it doesn’t seem to indicate a change in direction for Pareteum on the whole.
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