(NEW YORK)–Ludlow Research issues alert on MagneGas Applied Technology Solutions, Inc. (NASDAQ: MNGA), a leading clean technology company in the renewable resources and environmental solutions industries, stating recent pullback in stock has presented a more reasonable and attractive entry point in the $0.25 range.
MNGA recently announced a $5 million capital raise with a combine common and warrant price of around $0.23 per share. Under the terms of the agreement, MNGA agreed to sell 21,800,000 shares of its common stock, and warrants to purchase an additional 21,800,000 shares of common stock, with an exercise price of $0.3654.
In note to subscribers Ludlow Research made point that the stock had pullback to from recent highs in the $0.60’s to just above their offering price at or around the $0.25 mark, represented a much more attractive entry point for traders looking to take positions in the stock.
Giving MNGA strong retail volume it is in Ludlow Research opinion that these new shares coming to market should be absorbed into the float rather quickly, which could set the stage for short-term rally off its 50-day moving average around $0.23 per share.
The RSI on the chart has also pulled back from high of 85, which represents over bought territory, to now just under 50, which is a more reasonable level on which to speculate. (subscribe to alerts)
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About MagneGas Applied Technology Solutions, Inc.
MagneGas Applied Technology Solutions, Inc. (MNGA) owns a patented process that converts various renewables and liquid wastes into MagneGas® fuels. These fuels can be used as an alternative to natural gas or for metal cutting. The Company’s testing has shown that its metal cutting fuel “MagneGas2®” is faster, cleaner and more productive than other alternatives on the market. It is also cost effective and safe to use with little changeover costs. The Company currently sells MagneGas2® into the metal working market as a replacement to acetylene.
The Company also sells equipment for the sterilization of bio-contaminated liquid waste for various industrial and agricultural markets. In addition, the Company is developing a variety of ancillary uses for MagneGas® fuels utilizing its high flame temperature for co-combustion of hydrocarbon fuels and other advanced applications. For more information on MagneGas, please visit the Company’s website at http://www.MagneGas.com
The Company distributes MagneGas2® through Independent Distributors in the U.S. and through its wholly owned distributors, ESSI, Green Arc Supply, Trico Welding Supply and Complete Welding of San Diego. ESSI has 3 locations in Florida, Green Arc 2 locations in Texas and one location in Louisiana, Trico has two locations in northern California, and Complete Welding has one location in southern California. For more information on ESSI, please visit the company’s website at http://www.weldingsupplytampa.com
About Ludlow Research
Ludlow Research is a New York based equity research firm that focuses on providing research coverage and investor awareness services to emerging small-cap companies. For over 12 years we have worked to provide our readers with a simple way of evaluating the current and potential value of small-cap companies, while garnering these clients greater market awareness to new investors. For more information please visit www.ludlowresearch.com