Taronis Technologies TRNX Stock News

Taronis Technologies Inc (NASDAQ: TRNX) is dipping in the market this morning after having modest gains associated with a news release. In the news, the company said that it had commissioned a new production facility, including a new Venturi plasma arc gasification unit.

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The news was big in that the new unit will increase the company’s MagneGas by more than 50%. However, the reaction in the market was relatively small. Moreover, the stock is dipping today, leading to concerns.

In the comments of an article that I wrote on TRNX a couple of days ago, I was introduced to a video by Robin S. outlining the opportunity offered by Taronis Technologies. Take a moment to check out the video:

The Opportunity Is Very Real

The truth of the matter is that shareholders aren’t reaching out via YouTube for no reason. There is some real potential for value growth ahead.

First and foremost, the company’s MagneGas production has been climbing and is likely to continue to do so, especially considering the new production facility that was just announced.

Moreover, there have been multiple international agreements announced that have the potential to greatly expand revenue as well as the MagneGas brand on an international stage.

Beyond the MagneGas opportunity, TRNX has had a lot of news around its water treatment service and other water technologies. With proof that it was able to reduce cianobacteria in a lake in central Florida during a blue green algae bloom, other municipalities are likely to reach out for similar services.

The company also recently announced that its subsidiary, Water Pilot, helped a Holiday Inn franchisee save tens of thousands of dollars per year by locating a water leak that has and would have continued to go unnoticed.

This technology has the potential to do the same for countless hotels in the United States and around the world, as well as other, commercial buildings and types of customers.

If The Story’s So Good, Why Has The Stock Been Down

While there has been a lot of good news from TRNX as of late, there was one, hard hitting, piece of bad news. The comapny moved forward with a reverse stock split. Investors never like to see reverse splits as they can isinuate that a stock is in some serious trouble.

In this particular case, Taronis Technologies was trading below the minimum bid requirement of $1 per share for some time. As a result, it faced delisting, which would have led to the loss of liquidity and likely serious declines.

With that said, the comapny had no choice. By moving forward with the reverse split, TRNX was able to get their stock above the threshold, maintaining its NASDAQ listing. Sure, it’s a concerning thing, but investors should be happy it was done as it truly was in the best interest for all.

Nonetheless, with reverse splits, we see investors losing faith and short sellers grabbing on. That seems to be what’s happening here.

In my view, this trend isn’t likely to last long. With growing MagneGas production, proof of concept in the water treatment service and a big win with a Holiday Inn franchisee, there’s an easy argument to be made here that TRNX is undervalued and will likely find support relatively soon.

Final Thoughts

While Robin’s forecast of $15-$20 in the next year may be a bit exaggerated, I find myself following along the same lines. I believe that downward pressure fromt he reverse stock split will slow and come to an end relatively soon. I also believe that the stock is highly undervalued considering recent news and I believe that the shorts are going to pay in the long run here. Of course, it’s important to do your own research and consider the risks, but TRNX could be a big win!

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