Many generations ago, corporate titans would probably laugh you out of the boardroom if you proposed solutions that catered toward environmental, social and governance (ESG) principles. During the heady days of the analog era, bottom-line thinking dominated fiscal strategies, resulting in the awkward global interdependence that then-Senator John F. Kennedy warned about in October 1960.
Following the initial aftermath of the COVID-19 pandemic, Americans quickly recognized the flaws in pure capitalistic approaches. Without a framework for economic sustainability, the U.S. becomes vulnerable to the whims of other nations. Moreover, the same principle applies for the environment. By ignoring responsible resource consumption, the impact is not localized but universal. Thus, ESG has become a non-negotiable initiative.
Still, the process of actualizing sustainability presents a perplexing challenge. According to a McKinsey & Company report, the oil and gas industry must reduce its emissions by at least 3.4 gigatons of carbon-dioxide equivalent a year by 2050 to pay its fair share of climate-change mitigation. This math translates to a 90% reduction in current emissions, a gargantuan undertaking.
Since the high energy density of fossil fuels makes them presently indelible to global infrastructures, the international community requires a transitional solution, a perfect catalyst for the mCloud Technologies Corp. uplisting.
When Is the mCloud Technologies IPO Date?
Following years of trading in Canada’s TSX Venture Exchange and in the over-the-counter (OTC) market for American investors, mCloud Technologies will finally make its true substantive debut on Nov. 24, where it will list its shares on the Nasdaq under the ticker symbol MCLD.
To avoid confusion, mCloud’s Nasdaq introduction is not technically an initial public offering (IPO) since the listing date does not represent the first time retail investors could access shares. Spiritually, though, MCLD stock features elements similar to a public market debut; hence its inclusion in the IPO calendar.
Aside from being the first opportunity the general public can acquire equity shares of a formerly private enterprise, an IPO’s main goal is to quickly raise a large amount of capital to fund expansionary efforts. If neither the speed nor size component is evident in a public raise, a company would have little incentive to give up its equity ownership.
However, small-scale IPOs may involve a listing to the OTC market, otherwise known as the pink sheets. Unlike an established exchange like the Nasdaq or New York Stock Exchange, OTC stocks typically trade across broker-dealer networks. One of the usual characteristics of such arrangements is the wide bid-ask spread. Since buyers and sellers negotiate directly with each other, it’s difficult to gauge an OTC stock’s true market value.
Given this and other pitfalls, most investors avoid engaging the pink sheets in favor of organized and controlled trading. Therefore, an uplisting is very similar to an IPO in terms of objectives. The “promoted” company will have more eyeballs on the underlying business since inclusion in an established exchange implies that the firm met the rigorous requirements for the uplisting.
An additional benefit to moving to the Nasdaq from the OTC is that research analysts from major financial institutions are more likely to place the target stock on their radar. Receiving prominent coverage — even if the published thesis is not necessarily favorable — is a typically net gain for the promoted firm. At the very least, people now know about the company.
Regarding MCLD stock specifically, though, prospective investors should be aware that the week of Thanksgiving is truncated. While that could be beneficial from a competition standpoint, many investors will have turned their attention to consuming turkey dinners and indulging their retail revenge in Black Friday shopping.
mCloud Technologies Financial History
On paper, the solution to address the worrying encroachment of the manifestations of climate change is simple: shift as much energy production to clean and renewable sources as possible. But the issue is that several companies have already done so, yet myriad obstacles still stand in the way.
Much of the problem is scientific in nature. While improving technologies have made alternative power sources like wind and solar much more economically viable, nothing will take away their intermittency. The sun will always set, and the breeze sometimes fails to cooperate. During such downtime, metropolitan areas must often rely on non-renewable energy to keep the lights on.
Further, despite substantial progress in sustainable initiatives, the U.S. Energy Information Administration reports that in 2020, “renewable energy sources accounted for about 12.6% of total U.S. energy consumption and about 19.8% of electricity generation.” Obviously, 12.6% is a non-zero number, but society is still far away from achieving net-zero carbon emissions.
Therefore, governmental administrations will not just focus on a hard pivot to 100% renewable solutions but will work to improve the efficiency of legacy energy infrastructures. And that’s where mCloud Technologies shines. As an asset management specialist for the energy and the heating, ventilation and air conditioning (HVAC) industries, mCloud leverages both sector experience and the latest innovations to improve resource-usage efficiencies and lower operating costs.
A crucial catalyst for imparting this improvement stems from the deployment of artificial intelligence-based protocols. For instance, mCloud, through extensive data analysis, can offer predictive maintenance schedules for its enterprise-level clients, ensuring that their equipment runs efficiently while minimizing downtime. Additionally, passive data collection can help pinpoint where energy firms are leaking materials, thus saving costs and mitigating environmental impact.
Better yet, mCloud’s pioneering mechanisms are not the exclusive occupants of a glossy marketing brochure. Rather, the company has demonstrated substantial growth, posting revenue of $21 million in 2020 — a far cry from the $660,000 generated in 2017.
Still, investors will pay a rich premium for MCLD stock as earnings per share remains deeply in the red. Thus, an acquisition here means that you are banking on its upside narrative, not on its current fundamentals.
mCloud Technologies Potential
Perhaps the biggest impetus for the skyward potential of MCLD stock is the cynically ironic notion that a full-court press to integrate clean and sustainable energy sources could be economically unfeasible, at least for several decades. For example, battery storage systems are available to counteract the intermittency of renewable sources, but they are incredibly expensive.
Further, a study from the Massachusetts Institute of Technology and the University of Chicago has “produced results that crush the optimistic view that market forces alone will drive the transition [to renewables]. The analysis shows that while innovation in low-carbon energy is striking, technological advances are constantly bringing down the cost of recovering fossil fuels, so the world will continue to use them — potentially with dire climate consequences.”
In other words, fossil fuels may well be a necessary evil. And attempts to phase them out might run counter to economic realities and scientific principles. Thus, mCloud potentially has the right approach: help hydrocarbon-based energy sources be as efficient and clean as possible.
Still, it’s always risky to trade stocks uplisted from the OTC market since a pink-sheet listing usually implies a flawed business model. These investments are unlike a Hollywood landmine in that “boom” is often your first warning, not a click.
How to Buy mCloud Technologies IPO (MCLD) Stock
As an uplisting and not a true IPO, interested investors must buy MCLD shares at the open, which is straightforward if you know how to buy stocks. If you don’t, just follow the steps below.
Step 1: Pick a brokerage.
Long gone are the days when brokerages featured mass discrepancies in financial incentives. Instead, competition and technology allow you to narrow your list of best brokers to platforms that best suit your needs and lifestyle.
Step 2: Decide how many shares you want.
Uplistings carry similar risks to IPOs as they involve moving from 1 paradigm to another. Therefore, it’s important to approach MCLD stock with a balanced share count.
Step 3: Choose your order type.
Before trading, understand these market concepts.
- Bid: The buyer’s best offer for a stock.
- Ask: The seller’s lowest acceptable price.
- Spread: The difference between the bid-ask price, the spread indicates market risk as this is also the profit margin for market makers.
- Limit order: Buy or sell requests at a predetermined price, limit orders provide transparency but no execution guarantees.
- Market order: Market orders guarantee fulfillment but only at the current rate.
- Stop-loss order: Stop-loss orders automatically exit your position at either a predetermined price or anything lower.
- Stop-limit order: Stop-limit orders only leave positions at a specified price, but they also carry non-fulfillment risks.
Step 4: Execute your trade.
Follow these steps to execute a market order:
- Select your action type (buy or sell).
- Enter the shares you want to acquire (or sell).
- Hit the Buy (or Sell) button.
Follow the same sequence for limit orders (but include your execution price).
MCLD Restrictions for Retail Investors
Review the Financial Industry Regulatory Authority (FINRA) rules on restricted persons before participating in an IPO. Don’t invest in companies in which you have privileged information.
Recently, popular brokerages like Robinhood have offered select pre-IPO shares for their members, allowing them to acquire new issues at their initial offering price.
Uplisted to a Hopefully Green Future
Whether you invest in MCLD stock or not, most people will be rooting for its success, as healthy returns would impel more enterprises to adopt ESG-friendly initiatives. At the same time, mCloud is not yet profitable, posing significant risks for those interested in engaging this uplisting.