MagneGas Applied Technology Solutions Inc (NASDAQ: MNGA) is running for the top early on in the trading session this morning after announcing a sales update. During the month of October, the company saw a nearly 200% year over year increase in sales. 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 stock as a result, and what we’ll be watching for ahead.
MNGA Provides A Positive Sales Update
As mentioned above, MagneGas is having a strong start to the trading session today after announcing a sales update. In a press release issued early this morning, the company said that in the month of October, it generated sales in the amount of $1.05 million. That figure provied strong growth over the same month last year, when the company only generated $0.37 million in sales. In fact, the math shows a 180% year over year increase.
In the announcement, MNGA said that the growth in sales was directly related to its expansion into California, Texas and Louisiana. This expansion was made possible through six different acquisitions that have been made this year.
The company said that the fastest growing market for it was the Texas and Louisiana combined market. This particular market saw a 68% growth rate month over month. However, once again, the growth is the result of acquisitions, three of which were made in the region, doubling the company’s retail store count and market presence in Paris, TX and Longview, TX.
The southern California market also proved to se impressive growth. When compared to September, October sales in the market were up 15%. The company said that the growth in this region had to do with sales of its metal cutting fuel product and strong new client adoption.
Finally, the company said that its northern California operations are the largest contributor of revenue. However, as the company’s largest and most mature market, it expects for growth to remain at a more sustained rate. Even in this market, the company saw a 5% sales increase over September and continues to see strong expansion in the medical and cannabis markets in the region.
In a statement, Scott Mahoney, CEO at MNGA, had the following to offer:
We are making good progress in scaling our business… We have immediately begun the integration of the three retail locations in acquired in October in East Texas and Shreveport. Our expanded sales team is doing an excellent job during this transition, and our new customers are embracing the new relationship exceptionally well. We are very pleased to generate 15% month over month growth compared to our September results.
We are also pleased to confirm that we have begun monthly billing under our consulting agreement in Germany. We are confident that this is the beginning of our scalable entry into the European markets for our renewable metal cutting fuel technology.
What We’re Seeing From The Stock
As investors, 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 MagneGas, the news proved to be overwhelmingly positive. After all, strong sales results show that the company’s work toward restructuring is proving to be fruitful. So, it comes as no surprise that excited investors are sending the stock screaming for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:48), MNGA is trading at $0.31 per share after a gain of $0.028 per share or 10.00% 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 company’s continued revenue growth as its acquisition spree seems to be paying off. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!