Taronis Technologies (TRNX) Stock Declines Expand Opportunity

Taronis Technologies TRNX Stock News

The past few trading sessions have been tough on Taronis Technologies Inc (NASDAQ: TRNX). The stock has fallen from $0.48 per share to the current price of $0.28 per share. After giving up nearly half of its value, many are wondering if it’s better to cut your losses or stay and wait for good news.

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In my opinion, if you’re in on TRNX, the latter is going to be the way to go, and if you’re not in, declines are only expanding the opportunity. Here’s how I see it:

Why TRNX Stock Is Presenting An Opportunity

Before we get into the details here, I want to point out a couple of simple facts about Taronis Technologies:

  • In the beginning of July, the stock was trading at just $0.14 per share. So, while it has come down from highs, those that invested in the beginning of July are still enjoying gains of 100%.
  • TRNX has a market cap of under $9 million. This puts the stock well in penny stock territory.

With that being said, it is common that following positive news (which we will get into later), we see strong gains in the values of penny stocks. Unfortunately, once these gains reach what traders see as a peak, we see profit taking, which is why the stock has fallen over the past few trading sessions.

The declines could also have to do with the company’s planned reverse stock split vote. While reverse splits are never looked at in a positive light by investors, this is a necessary evil to regain compliance with the NASDAQ.

With that said, it’s important to keep in mind that in the case of TRNX this profit taking is a natural reaction to the solid movement that we’ve seen as of late. Nonetheless, it’s also opening the door to opportunity!

Several Bits Of Positive News Have Been Released

What led to the gains in multiples in the value of Taronis Technologies stock is the fact that the company has released a ton of positive news as of late. In fact, the news releases came back to back, only expanding excitement with each announcement.

The first in this series of news releases came 11 days ago on July 8, 2019. In the press release, TRNX announced that it achieved record MagneGas production in the first quarter. During the quarter, the company produced nearly 250,000 cubic feet of MagneGas, the company’s clean fuel alternative to fossil fuels.

On July 9, 2019, the company issued a new press release. In this release, the company announced that it has launched two corporate videos. One of these videos was designed to assist in the sale of its products with the other showing a demonstration of its technology.

On July 11, 2019, TRNX said that it achieved record revenues. In fact, in June alone, the company produced $1.85 million in revenue, a record for the month. Moreover, quarterly revenues hit records as well, with the company generating $6.06 million in sales.

On July 12, 2019, the company announced that it received a positive listing decision from the Nasdaq. The company received an extension to regain compliance with the exchange’s regulations.

On July 15, 2019, TRNX said that it would be spinning off the Taronis Fuels unit. This is the Unit that produces and sells MagneGas. Shareholders will receive one share of the newly-public company for each share of Taronis Technologies owned.

On July 16, 2019, the company announced that it had completed its first commercialization of its water quality service. The company’s technology led to a substantial decrease in cyanobacteria in a lake in Clearwater, Forida during a blue green algae bloom.

Finally, on July 17, 2019, Taronis Technologies announced a shareholder town hall meeting. During the meeting the company will provide updates on progress and will be looking for a positive vote to move forward with a reverse stock split.

Putting This All Together

All in all, while TRNX may be falling in the market today, I don’t see these declines lasting very long. Profit taking is likely nearing its end, and with all of the positive news, gains are ahead.

Think about it, shareholders will get a share of Taronis Fuels, a company that achieved record production and led to record revenues. Moreover, these records were broken with a single Venturi Plasma Arc unit. The company launched a new unit in July and plans to launch another in August. As such, production is likely to continue climbing, only adding to the value for investors.

Moreover, recently success in substantially reducing bacteria in a lake in Clearwater validates the company’s work in this space. Moreover, this particular type of bacteria and blue green algae are major problems in Florida, with TRNX being the only company offering a viable service to combat this issue. As such, I’m expecting further gains in sales on this side of the business ahead as well.

Finally, there’s a strong chance that investors will approve the reverse split. As a result, the company will maintain its listing on the Nasdaq, yet another positive catalyst ahead.

All in all, sure, the stock is down, it’s not fun to see. Nonetheless, the positive news from the company suggests that declines are only creating a discounted opportunity to get in on future gains!

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