American Electric Technologies, Inc. (NASDAQ: AETI) is having a great day in the market today, with gains that are better tracked in multiples than percentages. The gains come after the company announced that it received a large 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 Announces Large Order
As mentioned above, American Electric Technologies is having an incredibly strong start to the trading session today after announcing that it has received a large order. In a press release issued early this morning, the company announced that its Chinese Joint Venture, BOMAY Electric Industries, has received orders for 40 control systems that will be used for new Chinese domestic drilling rigs.
In the release, AETI said that ten units will be shipped prior to next year’s Chinese New Year in February with the remaining being shipped by July of 2019. The company said that the estimated value of the order is $1 million for each system, bringing the total to approximately $40 million. AETI is the second largest owner in the joint venture with a 40% stake.
In the same release, the company also announced a large FPSO, or floating, production, storage and offloading vessel decommissioning project with its subsidiary M&I Electric Brazil. The company said that the project is expected to last for up to 24 months and reinforces its market strategy to move into the offshore oil production sector. The company said that reveneues are expected to be btween $1.5 million and $2 million by the end of the project. In a statement, Jose Octavio, General Manager at M&I Electric Brazil, 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 dig into the market is that the news leads to moves. In the case of American Electric Technologies, the news proved to be overwhelmingly positive. After all, the large order will generate a significant amount of revenue while the new project only adds icing to the cake. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top in the market this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:39), AETI is trading at $1.28 per share after a gain of $0.88 per share or 219.90% thus far today.
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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 delivery of the 40 units in the large order as well as the project with regard to moving into the offshore oil production space. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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