Taronis Technologies TRNX Stock News

Taronis Technologies Inc (NASDAQ: TRNX) is having a relatively rough start to the trading session this morning, trading on losses of nearly 4% early on. This is coming as a shock to many considering that the company announced that August sales represented more than 100% year over year growth.

While positive sales should send the stock upward, it looks like profit takers are dragging it down following the late-day run in value that we saw yesterday. Here’s what’s happening:

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Addressing TRNX Stock Declines

Before we get into the sales data from August, I wanted to address the declines that we’re seeing in the market. On message boards all over the place, we’re seeing comments like “Why is this thing falling after such positive sales news?” There’s a very easy answer to that question.

Yesterday, just before 3:00 PM, TRNX stock started to make a run for the top on high volume, bringing the stock to well over $2 per share. In general, when we see big runs in value like this from penny stocks, day traders are sitting ready to take profits.

After the stock ran, it hit what many saw as resistance, leading to profit taking. However, I do believe that the positive news today has dampened the effect of the profit taking that’s happening.

Positive Sales News From August Sales

In a press release issued this morning, Taronis Technologies announced the revenue results from August, showing incredible growth. In the release, TRNX said that it generated $1.85 million in revenue for the month, working out to a year over year increase of 114%.

In the release, the company said that the Texas/Louisiana market resulted in $0.78 million in sales. In this region, the largest for the company, revenue grew around 600% year over year.

This revenue growth is largely the result of several acquisitions made by TRNX in an effort to become one of the largest independent industrial gas distributors in the region.

During August, the California market generated almost $0.77 million in revenue, representing a 57% year over year increase. In this market, only one acquisition has been made in the past year and the majority of growth in sales were the result of organic growth and sales and marketing programs.

Finally, the Florida market generated about $0.3 million in sales. This figure is unchanged from August of 2018. Nonetheless, TRNX said that it is looking to add sales and marketing personnel in multiple Florida locations considering that the Clearwater industrial fill plant is now fully operational.

In a statement, Scott Mahoney, CEO at TRNX, had the following to offer:

Our team continues to generate consistently successful revenue growth. We are delivering above internal growth targets, and we are looking to capitalize on our momentum. When combined with our expanded MagneGas production capabilities, we look to maintain an aggressive marketing focus during our seasonally active months in September and October.

Should You Buy The Dip?

In my opinion, the answer is a resounding YES! At the end of the day, Taronis Technologies stock has been under pressure due to a recent reverse stock split. However, as I’ve explained in a recent post, this was a necessary evil.

However, when you consider the strong growth that we’re seeing in the MagneGas franchise and the free shares that will come from the Taronis Fuels spin off, there’s a lot of value to be had here. Moreover, the company has been making big moves with its water treatment and water pilot products, suggesting that there are strong gains ahead in these areas of the business as well.

All in all, the reverse split is behind us and over time, investor concerns will taper off. As this happens, this heavily undervalued stock has the potential to climb ahead!

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