SenesTech Inc (NASDAQ: SNES) is flying in the market yet again today after the dramatic gains seen on the stock yesterday. The gains are ultimately the result of news that the company may receive regulatory approval to market a pest control agent in one of the largest markets for pest control in the United States. However, with the strong growth we’ve seen, is SNES still a buy? Today, we’ll talk about:
- What started the run;
- what we’re seeing from the stock today;
- whether or not there is still value in buying now; and
- and what we’ll be watching for ahead.
What Started The Run On SNES?
With SenesTech running for the top for two straight trading sessions, there’s definitely a reason for the run. So, what is it? Well, it has to do with news announced yesterday. In a press release issued Monday morning, the company announced that the California Department of Pesticide Regulation proposed to register ContraPest® for use in California.
In the release, the company said that the proposed action will be posted for 30 days. Of course, if all goes well, the company will soon be able to market ContraPest® to customers in California, one of the largest pest control markets in the United States. In a statement, Dr. Loretta P. Mayer, Co-Founder and CEO at SNES, had the following to offer:
California consistently leads the way with respect to innovative and environmentally sensitive policies, and California consumers can be the most demanding of the products they buy and use – the products must be effective, they must be as safe as possible, they must be ethical, and they must pose the least burden on the planet. These are the qualities that we are committed to and evident in our design of ContraPest. I expect this will be a great market for ContraPest, with rapid adoption, as the California consumers are always ahead of the curve.
The above statement was followed up by Tom Chesterman, Executive Vice President and CFO at SNES. Here’s what he had to offer:
We have been preparing for a California launch for some months now, and will aggressively launch our prepared marketing and sales campaigns. We have already booked space at upcoming regional trade shows as well as advertising in the appropriate media, and have provided information to key opinion leaders.
What We’re Seeing From The Stock
As investors, we know that the news moves the market, and, in this particular case, the news proved to be overwhelmingly positive. After all, if SenesTech is able to market its product in California, the move will likely open a strong stream of revenue. So, the stock climbed yesterday and continues its upward trend today. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:14), SNES is trading at $1.63 per share after a gain of $0.38 per share (30.40%) thus far today.
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Is SNES Still A Buy?
With the dramatic gains that we’ve seen in the value of the stock over the past two trading sessions, it only makes sense that people are starting to ask whether or not the stock is still a buy. In my personal opinion, the answer is yes. The reality is that the company is likely to open a massive revenue stream, and it will likely happen very soon. So, there are two catalysts just around the corner here. The first is the final regulatory approval that we believe SenesTech will achieve, and the second is the announcement of commercialization in California. We believe that both of these announcements have the ability to generate massive gains.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on SNES. In particular, we’re interested in following the story surrounding the company’s goal of marketing ContraPest® in California. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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