American Electric Technologies, Inc. (NASDAQ: AETI) is flying early on in the market today, and for good reason. The company announced that its M&I Electric business has been awarded a $14 million contract. Of course, the news is exciting investors, sending the stock on a run for the top. Today, we’ll talk about:
- The new project;
- what we’re seeing from the stock; and
- what we’ll be watching for with regard to AETI ahead.
AETI Announces New Project
As mentioned above, American Electric Technologies is having an incredibly strong start to the trading session this morning after announcing a new project. In a press release issued early this morning, the company announced that its M&I Electric business has been awarded a $14 million contract. Under the terms of the agreement, AETI will provide a turnkey power delivery solution for a fractionation plant expansion project in Texas.
In the release, the company said that the award came from a leading Engineering, Procurement and Construction (EPC) firm. The firm is responsible for the design and delivery of this project to expand fractionation capacity for their midstream project customer. The project will include the M&I IntelliSafe™ line of products. This includes the voltage arc-resistant switchgear, low voltage arc-resistant switchgear, low voltage and medium voltage arc-resistant motor control centers, and medium voltage variable frequency drives. The company said that all of these technologies will be integrated into three large M&I Power Distribution Centers, also known as PDCs. In a statement, Charles Dauber, President and CEO at AETI, had the following to offer:
This project award is one of the largest in the company’s history and is further validation of our strategy to be a leading provider of safe, intelligent arc-resistant switchgear and turnkey Power Distribution Center solutions for the midstream and downstream oil and gas markets… We look forward to another successful project with this long time EPC customer for this fractionation plant project.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. After all, American Electric Technologies is going to bring in $14 million in revenue from a new project. So, it’s no surprise to see that excited investors are sending the stock screaming for the top. As is nearly always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:59), AETI is trading at $1.79 per share after a gain of $1.05 per share or 141.89% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AETI. In particular, we’re interested in following the story surrounding the new project. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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