SenesTech Inc (NASDAQ: SNES) is screaming for the top in the premarket hours this morning after announcing the conclusion of agricultural deployments of ContraPest. Here’s what’s going on:
SenesTech Announces Conclusion of Agricultural Deployments
In the press release, SenesTech said that it completed the agricultural deployments of ContraPest. The company went on to say that the product demonstrated sustained success in reducing rat populations while improving operating economies in poultry settings.
The company went on to explain that it has developed innovative technology for managing animal pest populations through fertility control as opposed to a lethal approach. ContraPest, the company’s first fertility control product, is marketed as a way to control rat in=festations.
This is a huge problem for farmers as rats in poultry facilities tend to cause significant damage. Moreover, these rodents can be hazardous to the health of flocks of poultry due to disease transmission, equipment impairment, pullet predation, loss of grain.
Moreover, SNES said that in severe cases, rats interrupt production.
The company went on to say that ContraPest was added to the existing integrated pest management plans of two poultry farming operations. At an egg production farm, rat populations were surveyed monthly using cameras for over a year to measure the reduction in rat activity as a result of ContraPest treatment.
On a second farm, SNES said a pullet house, the economic impact caused by rats before and after the introduction of ContraPest was tracked.
Importantly, the results from both farms showed a substantial reduction in rats within six months of deployment and continued success as the treatment progressed.
In fact, within 12 months, the egg farm confirmed a 90% decline in rat activity within 12 months. The pullet farm reported an 88% improvement in pullet survival after reducing their rat population with ContraPest, leading to $400,000 in increased revenue and decreased cost.
In a statement, Ken Siegel, CEO at SNES, had the following to offer:
While these results were from deployments at poultry facilities, the results are immediately applicable to many other agricultural situations. Anywhere there is high quality grain, there is the potential for rat infestations, and ContraPest is now proven in the field to reduce those infestations, reduce the negative economic impact, and improve overall food security.
What Analysts Think About SNES Stock
While there aren’t many analysts covering SenesTech stock, the one that is covering the stock has an overwhelmingly positive opinion. In fact, according to TipRanks, the analyst rates the stock a Buy with a $4 price target.
Moreover, considering the fact that the news today was so positive, and that it simply couldn’t have been included in coverage, the already impressive price target on the stock may be increased relatively soon.
At the moment, SNES stock looks like a great play for the investor and the trader. The long term investor will be excited because the company proved that its ContraPest product is effective at reducing rat populations at poultry farms. This has the potential to lead to significant revenue down the road, followed by significant growth.
From a trading perspective, the stock is also a strong play. With heavy short volume and a tiny public float, there’s a strong chance that the short term gains are far from over as a short squeeze may be in play.
All told, SNES stock is one for the watchlist.