MagneGas Corporation (NASDAQ: MNGA) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced preliminary sales results for the second quarter, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:
- The sales results;
- what we’re seeing from MNGA as a result; and
- what we’ll be watching for ahead.
MNGA Heads For The Top On Sales Update
As mentioned above, MagneGas Corporation is having an incredibly strong start to the trading session this morning after providing a sales update. In a press release issued early this morning, the company announced preliminary sales results as well as an update on operational activities throughout the second quarter.
In the release, MNGA said that second quarter sales came to a total of $3.0 million, representing incredible growth. In fact, at this level, the company saw an increase in sales of 213% on a year over year basis. In the release, the company said that the increased revenue is ultimately a result of its commercial acquisition strategy and underscores the immediacy in value generation from recent acquisitions. In a statement, Ermanno Santilli, CEO at MNGA, had the following to offer:
We are very encouraged by the exceptional revenue growth we are experiencing… We are particularly proud of the excellent job our team has done in making a smooth, positive transition for three acquisitions in the first four months of 2018. This is an intensely competitive industry, and we were successful in maintaining virtually every meaningful client relationship on an uninterrupted basis as we continue to execute on our acquisition strategy.
Not only were we able to preserve strong customer relationships, but in the case of both Complete Welding and Green Arc Supply, we benefitted from rapid sales growth in a matter of a few short months. We have been very successfully augmenting the sales force, implementing sound growth plans, and using MagneGas2® as a key competitive advantage to open doors and gain access to new clients.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of Magnegas, the news proved to be overwhelmingly positive. After all, what investor wouldn’t want to see such impressive growth in sales. So, it’s no surprise to see that the stock is making its way for the top in the market this morning. At the moment (9:58), MNGA is trading at $0.36 per share after a gain of $0.26 per share or 7.91% 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 MNGA. in particular, we’re interested in following the story surrounding the company’s continued sales growth and we’re excited to see the company’s full Q2 results. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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