MagneGas Corporation (NASDAQ:MNGA) Projects Revenue Growth
MagneGas Corporation (NASDAQ:MNGA) shares traded higher after the clean technology company said it expects its full-year revenues to increase by 120%. The stock gained 2.2% to end Monday’s trading session at $0.435 a share.
Monday’s rally did not have a big impact on the stock’s direction of trade. MagneGas Corporation (NASDAQ:MNGA) stock is down by more than 80% for the year.
For the full year, the company expects revenues of $7.5 million, up from $3.4 million reported last year. The expected growth follows the execution of an ambitious growth strategy over the past year, which Chief Financial Officer, Scott Mahoney, says has allowed the company to focus on sales.
MagneGas Corporation (NASDAQ:MNGA) has successfully expanded its distribution network by expanding relationships across the eastern part of the U.S. in addition to pursuing sales opportunities in Italy and Germany.
“The Company made a strategic decision a year ago to focus on immediate revenue generation, improving cash flows and profitability. I am pleased to report that we have turned the corner, and we are on pace to generate more revenues in the fourth quarter of 2017 than we have in any full fiscal year in our corporate history,” said Ermanno Santilli, CEO of MagneGas.
The ambitious growth strategy has allowed MagneGas Corporation (NASDAQ:MNGA) to record a material increases in operating cash flows.
4th Generation Gasification System
Separately, MagneGas Corporation (NASDAQ:MNGA) has completed the design process of a revolutionary 4th generation gasification system. Development of the new system is expected to put the company ahead of the competition.
The 4th generation gasification system will reduce total production costs by at least 50% in addition to a 75% reduction in power consumption per cubic foot. MagneGas hopes the new gasification system will gain significant market share.
“This new system should significantly reduce the cost of MagneGas2® production. It also has the potential to open lucrative markets in the gasification of solids and solid wastes such as coal and plastics,” said Mr. Santilli.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.