Ascent Solar Tech (NASDAQ: ASTI)
Ascent Solar has been a bit of a roller coaster in the market as of late. After announcing a very important contract and a patent, ASTI climbed dramatically. However, since then, the stock has been declining. Nonetheless, I maintain an incredibly bullish opinion of what we can expect to see from ASTI moving forward. Today, we’ll talk about why I expect to see gains in the near future and when we can expect that bullish activity to hit the stock.
ASTI Short Interest Falls Dramatically
Investors are clearly happy with the activity they’re seeing from ASTI as of late. This has become clear thanks to a short interest update that we recently saw on the stock. On December 15th, 439,806 shares were sold short, proving a strong decline of 46.2% in short interest since the November 30th total of 817,004 shares. Short interest is an important factor to watch when considering any stock as the higher the short interest is, the more investors are expecting for the stock to decline. Therefore, the reduction in short interest with regard to ASTI tells us that investors are expecting to see gains in the future.
A Recent Contract Will Send Revenue Soaring
Recently, we heard that ASTI has been granted the GSA Schedule 56 contract by the United States Government. This incredibly important milestone is likely to send sales skyrocketing for the company. That’s because of what the GSA Schedule 56 contract represents. Companies that are granted this contract become suppliers for the government. Under the new contract, it is now incredibly easy for all branches of the United States armed services, federal agencies, and other government agencies to purchase Ascent Solar Tech products. Considering that ASTI deals in light weight solar systems, there are several uses for the US Government with regard to their products and this should send sales upward in a big way. In a statement with regard to the new contract, Rafael Gutierrez, Senior Vice President and Chief Operating Officer at ASTI had the following to say:
“Ascent’s GSA Schedule 56 contract unlocks a large and previously untapped potential revenue opportunity. The military applications for Ascent’s lightweight and durable solar products are numerous, particularly considering the MilPak platform, but there are a multitude of other applications for Ascent’s products ranging from disaster relief to use by the US Forest Services…”
What We Can Expect To See From ASTI Moving Forward
As mentioned above, I have an overwhelmingly bullish opinion of what we can expect to see from ASTI moving forward. While in the short term, we may continue to see relatively flat movement, in the long term outlook, this stock is going to soar! The bottom line here is that under the new GSA Schedule 56 contract, the United States Government is likely to become one of Ascent’s largest customers. This is going to increase sales in a big way, leading to strong revenue, earnings, and ultimately, strong growth in the value of the company’s stock. Moreover, it’s clear that I’m not the only person with this opinion. With the massive decline in short interest surrounding ASTI, investors are clearly happy with everything they’re seeing.
What Do You Think?
Where do you think ASTI is headed moving forward? Let us know your opinion in the comments below!
[Image Courtesy of The Denver Post]
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