A niche solar gem (Part III)


We mentioned Aurora Control Technologies (ACU.V) to our readers in the past (April 19th and January 26th). If you're new here, ACU.V improves solar cell manufacturing efficiency through its innovative product. Here are the developments that led to the massive increase in stock price.

April 25 - Insiders of the company bought shares at $0.17- $0.18 (416K).

May 17 - Corporate Update: 1) Reports a successful independent evaluation of Decima and Veritas by a customer in Asia. 2) Announced that it will expand its product line to include a higher-value, integrated quality control system. 3) Received patent from Taiwan and reiterated the other countries where it has or holds [had] patents (i.e. China, Japan, Korea, the United States and the European Union).

June 9 - Announced a private placement at $0.18 cents for $500K with warrants $0.30 cents.

June 16 - Closed the private placement from June 9 at $0.18 cents for $545K with warrants at $0.30 cents.

June 21 - Announced a "breakthrough order in China that lead to record order backlog". The order came from a confidential customer in China for multiple Decima™ Gemini systems and Veritas™ wafer and process mapping software. The Decima and Veritas products will be integrated into new high-efficiency bifacial cell production lines. The company believed that it was awarded this order because of its capability to deliver real-time and accurate high-resolution measurements spanning the full front and rear surfaces of the cells.

While no details on the amount of the orders were provided by the company, we believe that ACU.V will continue to perform based on the demand. However, in the short term, where the stock price is headed is hard to tell. Over 15M shares were traded from June 21 to 23. It's clearly new territory when comparing to the past 3 months where the highest volume for a single day was 500K.

Technically, the stock is overbought at 70 and will likely pull back pending major news. Our forecast for next week indicate anything between $0.27 cents and $0.24 cents as a decent lower target. Interestingly, the exponential moving average for the last 10 days (EMA, 10) is at 0.$24.

The company is due to release their year end financials in July. This will certainly affects the trajectory of the stock price.

DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The content of rally is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions - rally cannot take responsibility for your investment decisions.


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