MagneGas Corporation (NASDAQ: MNGA) is having yet another incredibly strong start to the trading session this morning. If you go digging for news released by the company today however, you’re not going to find any. Nonetheless, there is a reason for the gains and it has to do with rebranding and potential non-dilutive funding. Today, we’ll talk about:
- Why MNGA is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why MNGA Is Headed Up
As mentioned above, MagneGas is having an overwhelmingly strong start to the trading session in the pre-market hours this morning. While the company has released no news today, the gains seem to be a continuation of excitement surrounding news that was released on Monday.
In a press release, MNGA said that it has formally renamed its company to MagneGas Applied Technology Solutions. The action took place on September 25, 2018 in an attempt to better align the company’s corporate identity with its broadened commercial approach. In particular, it wanted its name to reflect the three commercial applications associated with its patented submerged plasma arc technology.
MNGA also announced that it has accelerated its marketing efforts in Europe and is working on getting its hand on various grants. In fact, it is currently in multiple stages of grant applications that apply to all three commercial applications of its technology. Of course, if the company were to receive a grant, it would ultimately be receiving non-dilutive funding; a much needed factor in the continued growth of the company.
In a statement, Ermanno Santilli, CEO at MNGA, had the following to offer:
MagneGas was formed for the express purpose of delivering innovative solutions to impact the quality of life of a vast portion of the global population… Our technology was born out of a dream to take common wastes, sterilize them for the improvement of the environment, and extract commercial value through sensible waste-to-energy solutions.
Today, we now stand on the edge of strong commercialized opportunities, backed by government funding, in partnership with some of the leading research and applied science institutions in Europe. Our rebranding intends to bring science and solutions to the forefront of our brand, because that is what is driving our long-term growth in the U.S., Europe and globally in the future.
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 leads to moves. In this particular case, while the news is a couple of sessions old, it is overwhelmingly positive. This, combined with a low float and high short interest has led to a short squeeze and today’s monumental gains. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:09), MNGA is trading at $0.72 per share after a gain of $0.47 per share or 194.78% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
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 company through its rebranding process, accelerated marketing attempt, and attempt at getting its hands on non-dilutive government funding. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!