Yowza! The Credit Intelligence (ASX:CI1) share price is up 130% in 2 months

The Credit Intelligence (ASX:CI1) share price has seen a massive jump today, and is now up 130% since December. Here's the latest.

| More on:
Capex business spending Surging ASX share price represented by the word BOOM written on bright yellow background

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Credit Intelligence Ltd (ASX: CI1) shares rocketed higher today, up 31.43% to 4.6 cents a share.

The Credit Intelligence share price opened at 3.6 cents this morning after closing at 3.5 cents yesterday. But soon after open, the company's shares exploded to reach a high of 6 cents a share shortly after lunchtime today.

That means the company's shares were up around 71% at one point, despite having cooled off since. Today's closing price also means the Credit Intelligence share price is now up 130% since 16 December last year. Today's moves were enough to warrant an ASX 'please explain' speeding ticket this afternoon as well.

So what is this company? And what is sparking such a dramatic re-valuation?

Credit Intelligence is a debt restructuring and personal insolvency management business. It operates primarily in Hong Kong and Singapore, although the company has expansion plans in place for the Australian market.

What's been driving the Credit Intelligence share price?

The company likely started turning heads following its annual general meeting late last November. In this meeting, Credit Intelligence reported that its revenues for FY2020 had grown by 125% (from $6.05 million to $13.61 million) and its profits by 384% (from $934,000 to $4.54 million). The company also doubled its dividend and reported earnings per share (EPS) growth of 333%.

Interestingly, Credit Intelligence told investors that the company was being supported by "favourable macroeconomic conditions". As such, it advised the market that "COVID-19 related unemployment [and the] recession will massively increase demand for [its] services… for years to come" and that these conditions are "not yet reflected in growth numbers".

Although these announcements were evidently well received by investors at the time, it doesn't explain what's happening today with the Credit Intelligence share price. Indeed, the company has not released any market-sensitive information or major announcements in recent days, save for a release back on 8 February.

In that release, Credit Intelligence discussed its plans for a "next-generation, technology-enabled platform that will provide a better solution for the coming wave of millennial debts caused by BNPL [buy now, pay later services]".

There have been a plethora of companies involved in the buy now, pay later arena being inundated with volume surges and share price spikes this week. As such, it is possible that Credit Intelligence has been caught up in this euphoria.

However, in response to the ASX's pricing enquiry today, Credit Intelligence flatly denied any knowledge of possible causes for the surge in activity. It did not offer any speculation as to the underlying cause of the Credit Intelligence share price spike either.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »