Substrate AI's bullish run: doubles its value and is BME Growth's second best listed company this year
24/03/2023 – VALÈNCIA. The Valencian company has done very, very well for the company Substrate AI (SAI) its entry into the main stock market index of BME Growthi.e., the Ibex Growth 15. The decision of this market integrated in BME was announced on March 13, which set the 20th of this month as the date for the debut of the first artificial intelligence company to be listed in Spain, as reported by this newspaper at the time..
And in only four sessions -the last ones- the listed company chaired by Lorenzo Serratosa has catapulted 109.67% from 0.2690 euros per share to 0.5640 euros at yesterday's close -the intraday high was 0.6640 euros-, which was the highest since mid-October last year. And, the best part is that this "surge" has been accompanied by an explosive trading volume. Without going any further, more than 6 million shares were exchanged hands on Thursday, which contrasts with the pyrrhic 6,130 shares on October 13, 2022, when it was at current levels.
A SAI has gone from losing 93.35% of its value in the last fiscal year to -being the worst of all the listed companies in the Comunitat as reported in this newspaper- to double this year (97.20%) after stringing together the last five days of gains. Not only that, but it has emerged as the second fittest in 2023 of all BME Growth. Only ahead of it is the Andalusian biopharmaceutical group Biotechnology Assets (+119,13%). This is a big word, considering that there are 130 companies present in the previously named Alternative Stock Exchange Market (MAB).
And even more so considering that SAI marked historical lows last December 2 at 0.17 euros, which represents an impressive rebound of almost 232% from there to yesterday's close. Thus, the Valencian company has raised its capitalization to 15.08 million euros compared to 7.65 million on the last day of 2022. And what is still to come because we are still talking about a company that is very well positioned in one of the key sectors such as the artificial intelligence (AI).
Talking to the president
"During 2022 the market has been attentive mainly to rate hikes and the adjustment of valuations of technology companies. In this environment it has been very difficult for the work we were doing at Substrate AI to be recognized, and that with the handicap of being a new company in the market. Now it seems that things are changing and I believe that several factors are converging in this change", explains the president. Lorenzo Serratosa to this newspaper. And, among them, he points to three:
- "The end of the interest rate hikes has made it clear that the technology companies are cheap, with Substrate AI among them. Many analyst houses and investment banks are starting to say so.
- The launch of the ChatGPT and everyone is starting to talk about artificial intelligence and thinking about how to apply it to their business, something that we were already predicting. The sector is going to grow at over 30% per year in the next few years according to all analysts, which is very difficult to see in other sectors.
- We closed 2022 with sales growth of more than 100% and we are projecting the same increase for 2023, a year in which we expect to make a few new acquisition that will allow us to maintain a high rate of growth in the coming years".
Click here to view a larger chart. Source: YahooFinance
And this newspaper would add another one: the market never really valued it and it is now, with the entry into the Ibex Growth 15 when more than a few investors - both large and small - are realizing its potential. Not a few warned that its valuation at the time of its release last May was expensive.but from there to shake him so much, there is an abyss.
In addition, as Lorenzo Serratosa pointed out in an interview granted to this newspaper at the end of last SeptemberThe market is slow to recognize a job well done, because a listed company faces not only its own development but also a market in which many different interests converge. All legitimate, but not all aligned with long-term profitability. Those of us who have been investing for a long time know that one year is nothing, and the performance of a company in twelve months is not at all relevant to its long-term development".
The company led by José Iván García doubled its revenues during the past year, reaching 4 million euros and thus fulfilling its business plan.. All this, improving the projected negative Ebitda, thus reducing operating losses. The CEO warned at the time that they had a very ambitious plan that should lead to very high growth over the next few years, supported by the adoption of the IA in companies, which is growing at a rate of more than 30%. In this sense, the 2022 work is simply the foundation stone of this project."
An UPS that debuted at the end of November 2022 in the North American OTC market.. It did so in order to give entry to U.S. institutional investors. In this regard, it should not be forgotten that the Valencian listed company's man in the country of the stars and stripes is Bren Worthsaid Garcia, chief technology officer (CTO). "We must not forget that Worth is American and it was there that he developed the technology that we apply today in our products and that it was there that the Substrate AI project was conceived, in one way or another," said Garcia at the premiere at the American OTC.