American Electric Technologies, Inc. (NASDAQ: AETI) is having an overwhelmingly strong start to the trading session this morning, following up on the strong gains that we saw on the stock yesterday. The gains are ultimately the result of the announcement of a large, revenue generating order. Today, we’ll talk about:
- The news;
- what we’re seeing from AETI stock as a result; and
- what we’ll be watching for ahead.
AETI Climbs On Large Order
As mentioned above, American Electric Technologies is having an incredibly strong start to the trading session this morning, following up on yesterday’s gains. The gains come after the company announced that its Chinese joint venture, BOMAY Electric Industries has received a large order.
The order that was received included 40 control systems that will be used for new Chinese domestic drilling rigs. It is estimated that the value of each system will be approximately $1 million, bringing the total deal to about $40 million.
In the release, AETI said that the first ten of the units will be shipped prior to the Chinese New Year in February. The remaining units under the deal will be shipped by July of next year.
This is important news for the company as it owns 40% of the joint venture. So, the sale will lead to a large chunk fo revenue for the company. The company also announced that it has begun a large FPSO vessel decommissioning project with its subsidiary M&I Electric Brazil. This process is expected to take up to 24 months and revenue generated from the project will be between $1.5 million and $2 million by the end of the project. In a statement, Jose Octavio, General Manager of the AETI subsidiary, M&I Electric, had the following to offer:
We are glad to help our customers in this decommissioning project in a safe and environmentally responsible way.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to American Electric Technologies, the news proved to be overwhelmingly positive. After all, the new order will generate a substantial amount of revenue for the company. Moreover, the decomissioning project will add more than $1 million to that revenue generation. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:47), AETI is trading at $1.36 per share after a gain of $0.28 per share or 25.93% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on AETI. In particular, we’re interested in following the company’s performance through the large order and the new decommissioning project, as they both have the potential to generate strong revenue. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the iWatch Markets mailing list below!