Over 20% in quick bookable gains for our group, so far!
We are continuing coverage on Reliance Global Group, Inc. (NASDAQ: RELI), a company that acquires and manages wholesale and retail insurance agencies. It provides healthcare and Medicare, personal and commercial, trucking and transportation, and employee insurance products.
Current price $3.44/share
In the first 30 minutes of trading in today’s session, RELI shares gained to $3.52/share (+13%). Trading volume had already exceeded 120K shares, indicating the potential for a big trading day.
Based upon the price to sales ratio, RELI may present us with value. The current p/s average for the S&P 500 is 3.07X (Standard & Poor’s) and RELI is running 1.40X. It was just six months ago that RELI had a p/s ratio of 7.38X, so what happened?
On February 9th this year, the same day RELI shares began trading on the NASDAQ, the company had a 1:85 stock split, a move to enhance shareholder value by reducing the company share structure. The company shares immediately responded to these events by gaining to over $40/share, for a couple days, a seemingly reasonable price given the split.
Since then, the shares have consolidated to the current price and that may represent a value for investors today. RELI is a growing company with revenues indicating significant quarterly gains. The company has a promising platform, 5MinuteInsure.com, driven by artificial intelligence and potentially disruptive to the online insurance sector, currently in Beta.
In a press release from March 24th, Ezra Beyman, CEO of Reliance Global Group, commented, “we now operate through seven wholly owned agencies with plans to continue our M&A strategy.” This seems like a growth-oriented company.
The big drop in the company market value this year doesn’t seem to make sense, but whether it makes sense or not, it has created a potential buying opportunity. We believe RELI could support a market cap much higher than the current level of $12.9M.
The Traders News Group
This morning’s report below
Reliance Global (RELI) is New to the NASDAQ with an average 91% YOY Revenue Growth
Good day everyone,
We are initiating coverage on Reliance Global Group, Inc. (NASDAQ: RELI), a company that acquires and manages wholesale and retail insurance agencies. It provides healthcare and Medicare, personal and commercial, trucking and transportation, and employee insurance products.
Current price $3.10/share
Shares in float (est.) 5.29M
Insider ownership 27.5%
52-week range $2.92 – $44.53/share
Revenue growth in 2020 +63%
We like RELI, and see a path toward a possible higher valuation, for a few reasons:
Tiny float
Trading at 93% off its February 2021 high.
Revenue growth averaged 91% annually over the past three years.
The price to sales ratio is only 1.70X
On February 9, 2021, just 9 weeks ago, the company received approval to list its common stock on the NASDAQ Capital Market under the symbols RELI. Newly listed NASDAQ stocks can take some time before they gain investor awareness and that can be the best time to start your due diligence.
When we look at some of the data on the company stock chart, the shares appear they may be oversold. The current RSI (14) is 37.36 and the shares have fallen below their 50 DMA of $5.40 and below their 200 DMA of $8.89/share.
RELI seems to be a unique opportunity for a quickly forming gain in market value, trading at only 1.70X revenues. That price to sales ratio looks attractive for a company with rapidly growing revenues and a potentially disruptive platform to offer the insurance industry. With programs for organic growth and an eye toward accretive acquisitions, Reliance’s path forward looks to be well defined.
RELI has a subsidiary developing an internet platform called 5MinuteInsure.com, currently in Beta version and not publicly live yet. 5minuteInsure.com is a new and proprietary tool developed by Reliance Global Group to tap into the growing number of online shoppers to drive traffic to their insurance agents and affiliates. The company offers a unique approach, which utilizes artificial intelligence to provide insurance quotes online, in many cases, within five minutes, with minimal data input by the customer.
A RELI subsidiary, Fortman Insurance Services LLC, has been approved to offer Travelers and Nationwide insurance products nationally through the Company’s (not live yet) 5MinuteInsure.com platform, for now visit the corp. website here https://www.relianceglobalgroup.com/ . Travelers and Nationwide, among the largest property and casualty insurance providers in the U.S.
In a press release from March 24th, Ezra Beyman, CEO of Reliance Global Group, commented, “we now operate through seven wholly owned agencies with plans to continue our M&A strategy.”
Nsure.com
America’s first digital insurance agency. No salesmen. No long forms. No spam.
Reliance’s goal, including its strategic partnership and equity investment in Nsure.com as well as the 5minuteinsure.com platform, is to create the largest and most efficient agency/affiliate model in the industry by utilizing best-of-breed technologies to create a digitally empowered and scalable insurance agency model.
RELI is a pre-profit company so we want to consider the likelihood of profits in the future. The company generates revenues from commissions on the insurance policies it is involved with generating. The clearest path to profits is revenue growth and in the case of RELI, should they keep up their pace of revenue growth, profits could show up very soon.
About Reliance Global Group, Inc.
Reliance Global Group, Inc. is combining advanced technologies, with the personalized experience of a traditional insurance agency model. Reliance Global Group’s growth strategy includes both an organic expansion, including through 5minuteinsure.com, as well as acquiring professionally managed, undervalued and cash flow positive insurance agencies.
This should be a good starting point for your own DD, we will have more soon.
Together, We’re Strong!
The Traders News Group
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