This is a company you might not have heard of, but might want to consider after you’ve learned about it. Based in New Jersey, Reliance Global (NASDAQ:RELI) operates within the insurance market — though that’s not necessarily why some folks are talking about RELI stock now.
Let’s be more specific. Reliance’s primary business is the acquisition and management of wholesale and retail insurance agencies in the U.S. The company’s market capitalization is tiny at just $93 million, but this opens the door to huge growth potential.
What’s so interesting about a conglomerate of U.S.-based insurance agencies? Apparently, RELI stock was recently a short-squeeze target, so the attention has revolved around the stock rather than the company itself.
That’s unfortunate, as Reliance deserves investors’ attention and conviction. Still, whether you’re a quick-flip trader or a long-term investor, there’s something here for almost everyone with Reliance Global.
RELI Stock at a Glance
So, let’s go ahead and talk about the 800-pound elephant in the room: the short squeeze that happened late last year.
To be more precise, the stock zoomed from $2 on Dec. 8, 2021, to $6 and change by the end of the year. The momentum continued into 2022, with the share price floating around $8.5 today.
It’s probably not productive to try to predict what the Reddit short-squeeze crowd will do next with RELI stock. One thing’s for sure, though: betting against the stock now could lead to a dreaded margin call.
In other words, the trend is supposed to be your friend, not your enemy. Thus, it’s probably not a good idea to short-sell any stock while a squeeze play is in effect.
Applying technical analysis to RELI stock is difficult while the share price is moving so quickly. So, let’s do something revolutionary now: actually focus on the company itself.
Expanding the Platform
Reliance Global and its subsidiaries provide a broad variety of products/services. These include healthcare and Medicare, personal and commercial, trucking and transportation, and employee benefits insurance products.
Moreover, Reliance describes itself as is an insure-tech company that combines advanced technologies with the personalized experience of a traditional insurance agency model.
Reliance Global’s portfolio of insurance brokerages and financial service companies includes Minute Insurance, J.P. Kush and Associates and U.S. Benefits Alliance.
On top of all that, Reliance runs a cloud-based insurance platform known as 5MinuteInsure.com. This platform enables people to get online insurance quotes quickly.
Last year, Reliance Global expanded the 5MinuteInsure.com platform to eight additional U.S. states. With that, the platform is commercially available in 20 states, representing a “combined population of over 100 million people.”
Filling the Gap
Are you starting to discern a hyper-growth story here? If you’re not convinced yet, we’ve got another piece of evidence right here.
Not long ago, Reliance Global completed its acquisition of Medigap Health Insurance Company. That company is an insurance brokerage company headquartered in Florida, which specializes in Medicare supplement insurance.
Impressively, Medigap Health Insurance Company generated roughly $7 million in revenues during the trailing twelve months ending on Sept. 30, 2021.
Therefore, this should prove to be a worthwhile addition to Reliance Global’s already sizable insurance-market portfolio.
Reliance Global chief executive officer Ezra Beyman stated that the Medigap Health Insurance Company acquisition represents a “major milestone” for his company.
Furthermore, Beyman asserted that this transaction “immediately increases our revenues by approximately 70%, significantly expands our geographic footprint and broadens our capabilities within the Medicare supplement market.”
The Takeaway on RELI Stock
By now, you should know more about Reliance Global than just the short-squeeze potential of the company’s stock.
Certainly, it’s possible for RELI stock to move higher based on the activity of social-media traders.
It’s also possible, though, for the stock to continue trending upwards simply because Reliance Global is a small company that’s expanding quickly into high-conviction, technology-enabled healthcare niche markets.
I give RELI stock a “B” in my Portfolio Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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