Remark Holdings (MARK) Stock Soars On A Huge Win

Remark Holdings MARK Stock News

Remark Holdings Inc (NASDAQ: MARK) stock is heading down in the market this morning, but the dip may be well worth considering as an opportunity. The company issued a press release announcing that it has partnered with Hanvon Technology to win a key project in China. Here’s what’s going on:

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MARK Stock Rockets On Big Win In China

In the press release Remark Holdings said that it has partnered with Hanvon Technology to win the Phase 2 implementation of China Mobile’s contract for the transformation of its 17,800 corporate stores into smart retail stores. Hanvon Technology is a publicly traded Chinese system integrator.

MARK said that the project is expected to take place over the next two years. The first Phase of the project includes an upgrade of the 17,800 stores that will result in $50 million in revenue for the company.

In the second phase, further upgrades will take place, resulting in multi-year recurring software license revenues to the tune of “several million dollars” for MARK.

The win was related to the AI solutions provided by the company. In a statement, Li Bin, Deputy General Manager at Hanvon Technology, had the following to offer: Hanvon Technology and KanKan AI will strengthen our partnership with China Mobile as we were awarded the second phase of the project by jointly advancing the adoption of innovative AI technology for China Mobile’s Smart Telecom Operator Store Project.

The above statement was followed up by Kai-Shing Tao, Chairman and CEO at MARK. Here’s what he had to say:

KanKan AI is excited to continue our deep cooperation with Hanvon Technology. By combining their hardware expertise and sales channel with our advanced AI technology research and development, we expect the partnership will not only allow to us to win more contacts together with China Mobile, but also to expand our business in the smart telecom retail store market. China Mobile’s successful results from early Phase 1 implementations has resulted in an expanded commitment to our additional offerings. Our award winning AI solutions offer corporations a suite of applications that can be implemented in conjunction with existing security hardware.

This News Is Massive

The news released by Remark Holdings this morning is huge for reasons that I’m not sure everyone understands quite yet. First and foremost, this is a new customer for the company that will generate revenue in excess of $50 million over the next couple of years. That level of revenue represents a third of the company’s market cap, making this very significant news.

Beyond that, this is an important step in creating a compelling investing opportunity. Recently, MARK stock has been flying due to the implications of its AI-based thermal imaging technology as the coronavirus pandemic continues.

However, it’s important that the company’s products will have utility outside of the COVID-19 space too. That’s what we’re seeing from this agreement. Essentially, this news says that the company’s technology is versitile and can help provide solutions to several problems, not just the spread of sickness.

All in all, this makes MARK stock one that’s hard to ignore.

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