Recon Technology, Ltd. (NASDAQ: RCON) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced that it has signed a new agreement that will bring about $2.1 million in revenue through the door. Of course, the news excited investors who are sending the stock screaming for the top. Today, we’ll talk about:
- The deal;
- what we’re seeing from RCON stock as a result; and
- what we’ll be watching for ahead.
RCON Announces New Deal
As mentioned above, Recon Technology is having an incredibly strong start to the trading session this morning after the company announced that it has entered into a $2.1 million agreement. In a press release issued early this monring, the company said that it has signed an agreement worth about $2.1 million with Xinjiang East Home New Energy.
The agreement was signed on August 27, 2018. Under the terms of the agreement, RCON will sell East Hope a distributed control system for data collection and equipment control. The company will also sell East Hope a safety instrumented system for safety protection control. Under the terms of the agreement, the company will deliver and install the equipment before December 31, 2018.
In a statement, Mr. Shenping Yin, CEO at RCON, had the following to offer:
We are pleased to work with East Hope for this new project. We are proud that our solutions meet the stringent benchmarks on reliability, performance, and support required by East Hope. We look forward to expanding our relationship with East Hope and contributing to their growth strategy as we continue to grow our track record in the industry.
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 RCON, the news proved to be overwhelmingly positive. After all, the new agreement will bring $2.1 million in revenue to the company. So, it comes as no surprise that excited investors are sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:02), RCON is trading at $1.31 per share after a gain of $0.09 per share or 7.38% 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 RCON. In particular, we’re interested in following the story surrounding the company’s execution of its side of this agreement. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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