MagneGas Corporation (NASDAQ:MNGA)
MagneGas Corporation (NASDAQ:MNGA) stock is up over 50% as the trading day approaches lunchtime. Volume in MNGA stock is very heavy. The listed average daily volume is just over 332,000 but by mid-day over 7.2 million shares traded hands. The increased price and volume activity is due to the company’s release of preliminary Q2 financial results.
MagneGas Stock Chart:
MagneGas Corporation (NASDAQ:MNGA), headquartered in Tampa, FL, is a technology Company that counts among its inventions, a patented process that converts liquid waste into hydrogen based fuels. MagneGas Corporation sells MagneGas® to the welding market as a faster, safer, and hotter substitute for acetylene. The company is developing a variety of supplementary uses for MagneGas® fuels by exploiting its high burn temperature for co-combustion of hydrocarbon fuels. It is also selling equipment for the sterilization of bio-contaminated liquid waste (such as pig manure) for several industrial and agricultural markets.
The company’s Q2 2017 preliminary results were reported this morning through a company press release. Preliminary Q2 2017 revenues for MagneGas Corporation (NASDAQ:MNGA) were $966,204 versus $837,257 for the same period last year. According to the company’s press release, the increase was primarily due to an increase in customers and distributors. Preliminary gross profit for the second quarter ending June 30, 2017 increased to $433,547 compared to $364,982 for Q2 2016. Preliminary Q2 2017 operating expenses were $3.1 million, compared to $2.8 million for the same period last year. Preliminary operating expenses for the three months ended June 30, 2017 included a non-cash charge of $1.6 million in stock based compensation.
Ermanno Santilli, Chief Executive Officer of MagneGas Corporation (NASDAQ:MNGA), stated:
“We experienced a 50.1% increase in metal cutting fuel revenue in the second quarter of 2017 versus the same period last year. This compares favorably the industry growth rate of just 2-3%. Our growth in this segment is primarily due to the successful expansion into two new markets, which have begun to deliver consistent and scaled revenues for the Company in 2017. We have implemented additional sales and marketing initiatives, which we expect will help further drive our growth going forward. In addition, we are utilizing MagneGas2® as a key introductory product to penetrate large industrial clients. We then look to aggressively expand these relationships where we can profitably cross sell non-proprietary products. As an example of our success, our Sarasota, Florida location, opened in January of this year, is on pace to generate over $1 million in annualized revenue within the coming quarters. We look to replicate this success as we grow our Huntington, Indiana location, followed by additional locations planned in Florida in the coming quarters.”
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.
Don’t miss out! Stay informed on $MNGA and receive breaking news on other hot stocks by signing up for our free newsletter!
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.