Taronis Technologies Inc (NASDAQ: TRNX) is taking a big hit in the premarket this morning, down more than 18%. There’s good reason for the declines today, but there may be a big opportunity ahead. Here’s the scoop:
Here’s Why TRNX Stock Is Falling
Ultimately, there are two factors that are driving the price of Taronis Technologies down the tubes this morning. First and foremost, the company just went through a spin off.
When spin offs take place, assets once held by the parent company are moved to the subsidiary. So, many TRNX assets have been taken off of the books and moved. This leads to a dip that is pretty natural following these types of transactions. However, this isn’t the only thing that’s driving the price down.
An important part of the play here is a recently announced agreement that brings the company into Turkey. However, there may be a wrench thrown into these plans.
At the moment, there’s a lot of political uncertainty with regard to Turkey after the country purchased a weapons system from Russia, violating international laws. As such, various law makers in the United States are pushing the Trump Administration to move forward with sanctions on the country.
So, what does this have to do with TRNX? Well, if sanctions are the result, United States companies would not be able to do business in Turkey. So, it makes the value of the Turkey deal null as Taronis wouldn’t be able to work in the region.
Unfortunately, this is likely the cause of larger investors deciding to abandon ship. Of course, the little fish follow the big fish, leading to the type of declines that we’re seeing today.
There May Be A Big Opportunity Here
While there is indeed a dark cloud forming over TRNX stock at the moment, there may be a silver lining building around that cloud. Here’s how I see it:
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