MagneGas Corporation (NASDAQ: MNGA)
MagneGas Corporation (MNGA), an alternative energy company made an announcement yesterday regarding a new distribution agreement with leading industrial gas company AWISCO. The terms of the agreement are that AWISCO will be the exclusive supplier of MagneGas2 fuel in the tri-state area.
Awisco President’s Comments
“We have worked with MagneGas2 extensively during recent demonstrations at utility companies and other industrial customers. I am thrilled at the opportunity of representing this incredible product in our region. The feedback that we have received has been unanimously positive and we look forward to becoming the leading supplier of MagneGas2 in our region,” commented AWISCO President Lloyd Robinson. PR Newswire
MNGA Technical Analysis
MNGA gapped up in price yesterday to $0.99, up from the prior day’s close of $0.93 which is a 6% increase in price based on favorable news. Taking a look at the daily chart, we can see the last time the stock traded above this price level was on September 23rd when the stock hit a high of $0.99. Taking a further look back on the chart we can see the stock has been on decline since it hit its 52 week high of $1.58 on May 21st. The stock does have a relatively low float of 24.26 million shares and was trading on high volume yesterday at almost 6 times the normal daily trading volume. Both of these factors make the stock a good candidate for the gap and go strategy. The stock reached pre market highs of $1.12 meaning that it gave back $0.13 at the open equivalent to 12%. For trading purposes my entry point would have been $1.00 looking for a run through the pre market high of $1.12. My stop loss would have been $0.95 fearing anything below that and the move up on the stock would have stalled out.
MagneGas Corporation, incorporated on December 9, 2005, is an alternative energy company. The Company creates and produces hydrogen-based alternative fuel through the gasification of carbon-rich liquids, including certain liquids and liquid wastes. The Company has two products: a fuel called MagneGas and the machines that produce that gas known as, Plasma Arc Flow System. It has developed a process, which transforms various types of liquid waste through a plasma arc machine. A byproduct of this process is to produce an alternative to natural gas for the metalworking market. The Company produces gas bottled in cylinders for the purpose of distribution to the metalworking market as an alternative to acetylene. Additionally, the Company markets, for sale or licensure, its plasma arc technology. The Company has retail and wholesale platforms to sell its fuel for use in the metalworking and manufacturing industries. The Company produces fuel for the metalworking fuel market. The Company has tested in the United States and Australia the co-combustion of MagneGas with hydrocarbon fuels to reduce toxic emissions. The Company distributes products through several industrial gas companies in California, Michigan, Florida, Georgia, Indiana, and Pennsylvania. In addition, the Company has direct retail customers in Florida and New York. Reuters