Magnegas Applied Technology Solutions Inc (NASDAQ: MNGA) has been an exciting stock to watch recently, and for good reason. The company not only recently reported its financial results for the third quarter, it also announced several key initiatives that will likely lead to strong growth ahead. Today, we’ll talk about why investors are so excited about MNGA, what we’re seeing from the stock and what we’ll be watching for ahead.
Why Investors Are So Excited About MNGA
As mentioned above, MagneGas Applied Technology Solutions is having a great start to the trading session, following up on recent gains that we’ve seen from the stock. While there hasn’t been any news released over the weekend, there’s good reason for the excitement here.
It all started with the third quarter earnings report that was recently provided by the company. In the report, investors learned that revenue increased 195%, coming in at $2,598,820. Also, gross margins were up from 37.2% to 38.4%. However, this revenue growth isn’t the only exciting focal point of MNGA.
The company is also going through various restructuring initiatives. Earlier this month, the company announced the appointment of Scott Mahoney as the CEO of the company. Around the same time, the company announced that it repurchased 1,000,000 outstanding shares of Series A Preffered stock for $1,000,000 in cash and 5,000,000 shares of restricted common stock. As a result, Series A Preferred shares were terminated and control of the company has been given back to common stock shareholders.
In September, MNGA announced that it would be rebranding with a goal of better identifying and aligning the company with its efforts in Europe for industrial metal cutting applications and sterillization and waste-to-energy solutions.
Also, the company has new initiatives that were recently announced that will create further transparency for investors. Most notably, MagneGas said that it will be disclosing monthly production volumes and gas sales, starting in January. It is also in the process of redesigning its website to better reflect the new direction it is taking.
Finally, MNGA has recently announced quite a bit of news with regard to developments in Europe. The company said that it has met with several large port authorities in the region and plans to schedule demonstrations for these potential customers. These demonstrations will center around metal cutting fuels and will be provided at multiple locations throughout Europe.
A big part of the work in Europe has to do with government-sponsored funding. MNGA is working to access European grants to help advance the commercial opportunities of its technology. So far, it has been relatively successful. In October, the company received a 6 million euro EASME grant. Also, earlier this month, the company submitted an application for a 2.5 million euro grant through the European Commission’s Horizon 2020 grant program. In February, it is expected that the company will apply for its third European grant as well.
What We’re Seeing From The Stock
While no news was released by the company today, as you can see from above, there is a lot happening at MagneGas at the moment! With all of the positive news coming out of the company recently, it only makes sense that investors are excited, and that excitement is continuing today. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:27), MNGA is trading at $0.28 per share after a gain of $0.012 per share or 4.49% so 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 restructuring and rebranding initiatives as it looks as though its efforts are leading to tremendous growth. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!