Why CareCloud Shares Are Soaring

Zinger Key Points
  • CareCloud retains Citizens JMP, prompted by its receipt of an unsolicited indication of interest from a third-party to acquire the company.
  • The company rejects the offer which included $5.00 per share of its common stock.

CareCloud, Inc. CCLD shares are trading higher Monday after the company said it has retained an investment bank to examine and evaluate the terms of its Series A Preferred Stock and to make recommendations to the board that may be beneficial to the company and its shareholders.

The Details:

CareCloud said it retained Citizens JMP, prompted by its recent receipt of an unsolicited indication of interest from a third-party to acquire the company. 

The company said it received an offer on March 4, 2024, to acquire the company for $5.00 per share of its common stock and the $25 redemption price per share of its 8.75% Series B Cumulative Redeemable Perpetual Preferred Stock, with no mention of the company's 11% Series A Cumulative Redeemable Perpetual Preferred Stock. 

The board of directors thoroughly evaluated the indication of interest and determined it was in the company’s best interests to decline it in its present form.

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How To Buy CCLD Stock:

By now you're likely curious about how to participate in the market for CareCloud – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of CareCloud, which is trading at $2.30 as of publishing time, $100 would buy you 43.48 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

CCLD Price Action: According to Benzinga Pro, CareCloud shares are up 69% at $2.14 at the time of publication Monday.

Image: Shutterstock

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