From: Greenbackers
Sent: Wednesday, December 3, 2014 3:36 AM
Subject: Monitorng strong signs of turnaround with oversold MNGA at .76...pullback from runup to 1.30, yet several deals in last qtr....Presenting at a conference Dec 3, 2014.
Newsletter profile from www.greenbackers.com
Magnegas Corp. - Common Stcok (MNGA) |
| $ |
| Volume: |
Greenbackers is choosing to profile MNGA given signs of a turnaround developing on what we consider an extreme, oversold condition on a stock that has seen plenty of good news including several deals following their product luanch last August....In addition to presenting at a conference today.
The slide primarily came about following a sale of securities in Oct, however the offering price was at a buck....Given, we feel there is a potential opportunity here, given the stock is selling at a 25% discount to that offering price, in addition to all the good news they have seen in the last qtr...
On October 21, 2014, MagneGas Corporation (the "Company") entered into a Securities Purchase Agreement (the "Purchase Agreement") with an institutional investor (the "Investor") providing for the issuance and sale by the Company of 3,000,000 shares of the Company's common stock, par value $0.001 per share, at a purchase price of $1.00 per share (the "Common Shares")
In the last week, we are now seeing signs of a potential turnaround after some recent firming in lower .70s....Notice in particular, the volume pickup!
MagneGas to Present at the LD Micro Conference
MagneGas Corporation ("MagneGas" or the "Company") (MNGA), a technology company that counts among its inventions a patented process that converts liquid waste into a hydrogen-based fuel, announced today that Luisa Ingargiola, Chief Financial Officer of MagneGas, will present at the LD Micro Conference in Los Angeles at 3:00 p.m. PT (6:00 p.m. ET) on Wednesday, December 3.
Following the last profile we did on MNGA, the company released an interesting piece of information that pointed to more good news since their product launch last August..
- MagneGas Sees Increased Fuel Demand Following FABTECHPR Newswire(Wed, Nov 19)
Excerpt: .....the Company received overwhelming positive feedback regarding the new MagneGas® 2 product demonstrations...."The response to MagneGas 2 from attendees at FABTECH was outstanding.....
Back in early November we issued a report on MNGA that also pointed to increased demand since August:
MNGA seeing a string of bullish news this fall.....Potential Game Changer with their breakthrogh technology that Converts Manure Into Useable Fertilizer. Also, expanding on their patented process that converts liquid waste into a hydrogen-based fuel.
In addition, closer attention should be given to MNGA due to solid earnings and a conference they are presenting at this week.
First: MNGA reported a solid growth earnings report on Nov 10, 2014 highlighted by a 32% revenue jump
- MagneGas Reports Financial Results For Third Quarter 2014PR Newswire(Mon, Nov 10)
MNGA CEO summed it up with: '...I am pleased that we advanced all facets of our strategy while controlling costs and increasing revenues...'
- Launch of the new MagneGas2® fuel made from renewable waste;
- Signature of definitive agreements for the purchase of a gas distribution company;
- Confirmation by the Fire Department of New York that it is in the final stages of testing MagneGas® as a replacement to acetylene;
- Signature of a Memorandum of Understanding with a major hog farm which produces 40,000 hogs per year, to create a platform for the testing, processing and marketing of the MagneGas liquid sterilization system;
- Filing of a definitive patent on the Company's new fuel and system design;
- Introduction of the new MagneTote™ gas storage system for fire departments;
- MagneGas Acquires Independent Fuel Distribution CompanyPR Newswire(Mon, Oct 27)
The acquisition is an established industrial gas distribution company with estimated 2014 gross revenues of almost $2 million earned through the sales of industrial gases and related products....will allow more rapid market penetration to grow recurring sales of MagneGas® fuel
- MagneGas to Demonstrate at the Largest Fabrication and Welding Event in North America Nov 11-13PR Newswire(Thu, Oct 2)
- MagneGas CFO Invited to be a Panel Speaker at the Nasdaq Uplisting Seminar in New York CityPR Newswire(Fri, Oct 24)
- MagneGas Corporation Enters Into Definitive Agreements for Financing of $5 Million in Gross ProceedsPR Newswire(Tue, Oct 21)
- MagneGas Signs Letter of Intent with Urban Fish FarmPR Newswire(Tue, Sep 30)
- MagneGas Launches Innovative MagneTote™ Product LinePR Newswire(Mon, Sep 29)
- MagneGas Enters Final Test Phase with New York City's Fire DepartmentPR Newswire(Tue, Sep 23)
- New MagneGas® 2 Fuel Enters Market with Favorable ResultsPR Newswire(Mon, Sep 22)....Several customers are now using the new product with recurring fuel orders and positive feedback has been received, leading the Company to expand its sales and production efforts.
- MagneGas CEO Interviewed by Southern Farm NetworkPR Newswire(Tue, Sep 16)
....CEO Mr. Santilli discussed the MagneGas sterilization system for manure and the potential impact it could have on the industry. According to Purdue University, there are 73,150 pork farms in the United States. The U.S. is the 3rd largest producer of pork in the world. The Company believes this market could be a significant opportunity for growth...
MagneGas Signs Agreement with Major Hog Farm for Demo and Sale of Sterilization SystemPR Newswire(Thu, Sep 4)
Bottom Line: The key to all of the recent press releases is that their MagneGas® technology is gaining acceptance/momentum with various industry sector platforms. With this in mind, we think MNGA is quite capable of climbing back to 1.30 as it's done so in the past, especially with, more defined, recent firming at .90.
Earlier in Sept we reported on MNGA :
Examining a potential turnaround with MNGA on news one outsider as well as their CEO consider quite compelling for the company, in that it will allow the company to greatly expand their market for MagneGas® 2.
The news involved a major acquisition that we alerted on at one of our blogs:
CEO: This purchase would provide a springboard to introduce and sell MagneGas® 2 to a much larger audience......
- MagneGas Signs Agreement to Purchase Gas Distribution Company PR Newswire(Tue, Aug 19)
Noteworthy from the company PR: MagneGas Corporation, a technology company that counts among its inventions a patented process that converts liquid waste into a hydrogen-based fuel, announced today that it has signed a Letter of Intentto purchase an established industrial gas distribution company with estimated 2014 gross revenues of approximately $2 million.
"Signaling confidence with our new product MagneGas® 2, we now are entering the next phase of our expansion into the industrial gas market with the intent to purchase a local well-established gas distributor. This purchase would provide a springboard to introduce and sell MagneGas® 2 to a wider audience of customers around the Tampa Bay area," stated Ermanno Santilli, CEO
Besides news in the last month (plus), also noticing a string of developments over the summer:
- MagneGas Completes Sale of System to Central Asian CompanyPR Newswire(Mon, Aug 4)
- MagneGas® Featured on Bloomberg Street SmartPR Newswire(Fri, Jul 25)
- MagneGas® Signs Agreement with Georgia TechPR Newswire(Thu, Jul 24)
- MagneGas files provisional patentsat theflyonthewall.com(Wed, Jul 23)
- MagneGas® Files Provisional Patent on Design Improvements and New GasPR Newswire(Wed, Jul 23)
- Announcing Webinar on new MagneGas® 2 Product LaunchPR Newswire(Tue, Jul 22)
Regarding recent technicals MNGA is displaying ongoing support near a buck and a history of pickups to 1.30 in Sept as the deals pickup.
Longer term the chart is constant....Notice since runup last spring, the stock displaying constant ability to channel back to upper One's, while displaying ongoing support around at a buck as well, suggesting favorable risk/reward appeal at current levels.
Examining Financial stats, what stands out the most is the company has no debt......In addition, trades at a very respectable 2.5 times book.
| Balance Sheet | |
| Total Cash (mrq): | 6.44M |
| Total Cash Per Share (mrq): | 0.19 |
| Total Debt (mrq): | 0.00 |
| Total Debt/Equity (mrq): | N/A |
| Current Ratio (mrq): | 16.43 |
| Book Value Per Share (mrq): | 0.44 |
Bottom Line: With their new, breakthrough MagneGas Sterilization system gaining market share, the recentmajor acquisition and mounting deals in Sept along with constant support near a buck, we find the stock attractive for accumulating at current levels. Debate as an intermediate term hold with a 1.30 target initially and 1.50+ into 2014.
Disclosure:
Greenbackers is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to its readers.
While the majority of our stock mentions are unbiased, Greenbackers may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about from time to time
Greenbackers is anticipating compensation from a third party Emerging Markets LLC in amount of $500.00 to assist in expanding awareness with MNGA
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