Astrotech Corp (NASDAQ: ASTC) is having an incredibly strong start to the trading session this morning, gaining in multiples rather than percentages. The gains come after the company announced that its subsidiary’s product will be entering into the ECAC’s CEP for airport checkpoint screenings. Of course, the news led to excitement among investors, sending the stock soaring. Today, we’ll talk about:
- The news;
- what we’re seeing from ASTC as a result; and
- what we’ll be watching for ahead.
ASTC Heads For The Top On ECAC News
As mentioned above, Astrotech is having an incredibly strong start to the trading session this morning after announcing news with regard to its subsidiary. In a press release issued early this morning, the company announced that its subsidiary, 1st Detect, has a new explosives trace detector (ETD) called Tracer 1000 that will enter the European Civil Aviation Conference (ECAC)’s Common Evaluation Process (CEP) for airport checkpoint screening of passengers and cargo in the coming months.
ASTC reminded investors that the ECAC is the European regulator on aviation security. In fact, it is the European equivalent to the United States’ Transportation Security Administration (TSA). The CEP was established to provide standards for security equipment performance across 44 member nations. As such, the news brings the company one step closer to an incredible source of revenue. In a statement, Thomas B. Pickens III, CEO of both Astrotech and 1st Detect, had the following to offer:
We are pleased to be taking this major step toward European Qualification of our TRACER 1000, and are confident that our system will meet and exceed CEP performance standards.
The above statement was followed up by Raj Mellacheruvu, COO at both 1st Detect and ASTC. Here’s what he had to offer:
In addition to achieving TSA certification for passenger and cargo screening, both of which are on track, we look forward to having another major endorsement that serves to validate our system’s superior detection and security capabilities.
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 the case of Astrotech, the news proved to be overwhelmingly positive. After all, if all goes well, the TRACER 1000 could soon become a substantial source of revenue. So, it’s no surprise to see that excited investors are sending the stock on a run for the top. At the moment (9:03), ASTC is trading at $6.10 per share after a gain of $4.15 per share (212.82%) 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 ASTC. In particular, we’re interested in following its subsidiary, 1st Detect, and their work with regard to the Tracer 1000, as the product could prove to be a strong source of revenue. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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