Recon Technology, Ltd. (NASDAQ:RCON)
By 3 PM EST Recon Technology, Ltd. (NASDAQ:RCON) shares had traded hands over 20 million times. Its 30-day, daily trading average is 20,140 which makes today’s volume figure over 1,200 times the average. At the time of this writing RCON shares are trading around the $2.28 level after closing Friday at $1.02. The catalyst for the 120%+ move hat it has signed a three-year strategic cooperation agreement (“Agreement”) with Beijing OriginWater Purification Engineering Technology Co., Ltd (“BOW Engineering”). According to terms of the agreement, Recon Technology and BOW Engineering will collaborate and promote advanced sewage treatment technology in the Chinese oilfield markets. Together they will also supply solutions and services of superior quality and effectiveness to tackle industrial water pollution.
Mr. Shenping Yin, CEO of Recon Technology stated in the press release “Chinese government as well as large oil companies are dedicated to protecting the environmental during oil production and seeking more efficient techniques and equipment to realize cost-saving and meet increasingly stringent environmental protection requirement… With its abundant market experience, deep insights and visions in oilfield markets, and support of BOW’s team of specialists, we believe Recon will maintain research and technological advantages and deliver better performance.”
Beijing OriginWater Technology Co. Ltd. addresses China’s three main water challenges: water pollution, water shortage and confidence in the drinking water supply. BOW is one of the world largest water-membrane technology enterprises and is also a leading developer of environmental protection enterprises.
Before today’s trading, RCON stock’s 52-week high was $1.93, reached late last year. Its 52-week low was $0.64 which was reached last month. 15% of the share’s float is held by short-sellers – a number that will likely decline given the positive news. Insiders own 53% of the shares and institutions own less than 1%.
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.