MagneGas Applied Technology Solutions Inc (NASDAQ: MNGA) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced a sales update that proved to be positive. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The sales update;
- what we’re seeing from MNGA as a result; and
- what we’ll be watching for with regard to the stock ahead.
MNGA Announces Sales Update
As mentioned above, MagneGas Applied Technology Solutions is having an incredibly strong start to the trading session this morning after providing a sales update. In a press release issued early this mroning, the company announced that it generated sales of $0.9 million in the month of September. That figure showed a 260% increase over the $0.25 million generated in September of 2017. In the release, MNGA said that the sales growth was the result of its expansion into California, Texas and Louisiana through three acquisitions made earlier this year.
In the release, the company said that it experienced improved sales in California, particularly in the agricultural cannabis sector and overall agricultural client base at the Company’s norther California operations managed under the Trico Welding Supplies brand. The company als said that it’s seen stead growth in the San Diego market under the Complete Welding Brand. Finally, the Texas market continued to improve as new clients added during the quarter migrated their relationships from several competitors to Green Arc Supply. Finally, the Florida market has benefitted from the seasonal increase in demand from several large clients.
In a statement, Ermanno Santilli, CEO at MNGA, had the following to offer:
Our sales team is making strong progress in the markets we serve… Our California team is seeing strong sales growth right now. Our team has done an excellent job penetrating the rapidly growing cannabis market in California, and that is driving accelerated sales growth we’re experiencing. Our operations in Texas continue to win many large new clients that are also driving accelerated sales growth. Florida is also transitioning to our seasonally busy period, as we serve our customers during their utility maintenance programs.
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 the case of MNGA, the news proved to be overwhelmingly positive. After all, 260% year over year growth is an impressive feat. So, it comes as no surprise that excited investors are sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:45), MNGA is trading at $0.29 per share after a gain of $0.037 per share or 14.62% 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 continued growth in sales as the company’s restructuring plans seem to be paying off. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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