Eguana Technologies Inc. (EGT.V) designs and manufactures power controls for energy storage applications. Coverage was initiated on July 10th with a more recent note on January 2nd where we outlined the addressable market, challenges, opportunities and possible catalyst.
Since our last updates, the following releases were issued:
Jan. 10 - Additional shipment to Hawaii ($1M - Scheduled for January). Over 40% market share of the customer grid supply (CGS) market is estimated in Oahu. Requirement for advanced power controls to manage power flow to be rolled out in early 2018.
Jan. 17 - Accepting “All in One” residential energy storage system (RESS) through Eguanatech.de. custom engineered for the German self-consumption market. EGT.V also is anticipating commercial launch in Q2/2018 and will showcase its full product range at EES Europe, in June
Jan 29 - Completion of a multi-year master supply agreement with its German automotive partner with an estimated value of $13M for the current year. Initial product release of $3.2M has been received with planned shipments beginning in May followed by 3 additional product releases. For competitive reasons, the partner’s name and target market remain confidential.
That's three releases in three weeks addressing all the concerns that drove the stock to a 52 week low of $0.15 cents in earlier this year (2018). Yesterday, EGT.V charged ahead to $0.34 cents (52 week high) with potentially more opportunities in Australia, New York, California and Ontario.
A Net Sell/Buy report was generated from the total volume of January 29th - 31st inclusively (9M). The report is sorted by Net Sell/Buy quantity, and include a Sell/Buy Ratio as well as a % Volume of the total three days.
As displayed below, Anonymous, Scotia and Fidelity were the largest net sellers in quantity representing 22% of the volume for that period. In contrast, Mackie, BMO and Credit Suisse were the largest net buyers in quantity representing 27% of the volume for that period.
As displayed in the chart, the stock is technically overbought (81) and likely to pull back in a few days. We expect the stock to eventually consolidate between $0.27 and $0.295 cents until the next catalyst. Also note that the $0.29 is the R1 pivot point on the longer term weekly chart.
In other words, the $0.04 cents gap (Jan. 26 close to Jan. 29 open) is likely to be filled!
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