It has been an interesting ride for Mogo (TSX:MOGO)(NASDAQ:MOGO) in 2019. Shares rose to a 52-week high in April after the company announced its acquisition of Difference Capital Financial. The deal gave Mogo immediate access to approximately $9 to $10 million in cash and access to Difference’s portfolio of assets.
Mogo is set to release its third quarter 2019 results in early November. In the second quarter the Vancouver-based fintech saw core revenue rise 41% year-over-year to $16.4 million.
It ended Q2 2019 with an impressive $42 million of cash and investment portfolio. Adjusted EBITDA rose 116% from the prior year to $1.6 million and gross profit increased 5% to $10.4 million.
Active members at Mogo climbed 32% year-over-year to 865,000 at the end of Q2. Bitcoin trading volume surged over 500% as the digital currency enjoyed a run-up in the late spring and early summer.
This has dissipated into the early fall. Mogo has expanded its offering of MogoProtect to Canadians through a partnership with the Brick, and recently completed work to enable the launch of partner lending.
Shares of Mogo are currently trading less than $1 off its 52-week high. The stock climbed into technically overbought territory in late September but has since retreated below the $4.50 mark.
I like Mogo as a long-term play, but investors should be patient and seek out a better entry point before its next earnings release.
