12 Retech Corp (OTCMKTS:RETC) might as well have served catalysts sure to trigger a bounce back from all-time lows. The stock’s sentiments in the street have received a boost on the company announcing the opening up of an Emotion Fashion factory Store in Salt Lake City. Investors reacted to the news pushing the stock up by more than 100%.
12 Retech Corporation Price Analysis
The stock has come under immense pressure ever since it rose to the $0.21 handle. Soaring short selling pressure saw the stock plunge to all-time lows of $0.01, from where it is trying to make come back. A lack of solid news to gauge the company’s long term’s prospects has also gone a long way in affecting the stock’s sentiments in the market.
However, that appears to be changing as a string of positive announcements in recent weeks have gone a long way in strengthening Investor confidence in the stock. While 12 Retech Corporation is still engulfed in a steep bear trend, the direction of trade could change in the wake of the recent 100% spike.
With the stock still trading at the $0.01 handle, it needs to rise and stabilize above the $0.03 mark to reaffirm suggestion of an emerging uptrend. Above the $0.03 handle, the stock could make a run for the $0.06 handle, seen as the next substantial resistance level. Below the $0.03 mark, the stock remains susceptible to further declines given that bears remain in full control.
About 12 Retech Corporation
12 Retech Corporation operates an integrated platform that includes A 12Mirror and an in-store application. The platform recognizes clothes that people are fitting in stores, takes pictures which are then shared with family members and friends.
Salt Lake Store Opening Impact
12 Retech Corporation trading activity received a boost on its wholly-owned subsidiary Emotion fashion Factory announcing the opening up of a new factory boutique store in Salt Lake City. Doubling up as a 12 Technology Suite demonstration facility, the store will sell contemporary women’s fashion apparel.
“This new facility is designed as a factory store where we can show to other consumer brands who operate their own factory stores, what our technology can do to enhance and increase shopper engagement. It will feature a dressing room and merchandise displays in a floor space of approximately 1,000 square feet.” said CEO, Angelo Ponzetta
The opening up a demonstration facility in Salt Lake City also came with a confirmation that the company is building 12 Technology Suite in Europe. Zurich City will play host to the company’s new demonstration facility where it plans to host a number of Europe’s luxury brands.
According to Emotion Fashion Brands Chief Executive Officer, Hub Blanchett, the technology up for display is quite engaging and should add value to the company’s operations in the store.
Recently released financial results indicate that 12 Retech Corporation did experience revenue growth in Q2. Revenue increased to $16,682 from $7,740 in the first quarter. The firm attributes the increase to a successful start of operations at Emotion Fashion Brands.
The company expects substantial revenue growth going forward on the delivery of the 12 Technology Suite products to European and U.S Markets. According to the management, Q2 activities and results position the company for future growth in the technology and consumer products business.
12 Retech Corporation is currently investing in technology demonstration showrooms for key market geographies. The management expects the new technology to help deliver shoppers back to clients as well as lower operating costs.
“We are also working to increase the operations of our consumer products platform and expect to see better results over the second half of the year from those operations. Our progress on closing several acquisition transactions has been slow, but we are still convinced of the viability of our acquisition strategy in both consumer products and technology,” 12 Retech Corporation In a statement.
What Next For 12 Retech Corporation
12 Retech Corporation rally in the market, in recent trading sessions, does not come as a surprise. The company has continued to re-affirm its commitment to the implementation of market, customer, technology and other related technologies all in the effort of generating sales and profits in the long-term.
Investors are slowly taking note of the achievements made so far, especially on the implementation of 12 Suite product suite. Revenue growth in Q2 underlines the fact that the strategies are finally paying off and that the company could achieve revenue growth going forward.
That said, the stock looks set to continue climbing high after the recent 100% spike. However, it would be nice to wait for the stock to rally and stabilize above the $0.03 mark before eyeing long-term opportunities.
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Disclosure: We have no position in RETC and have not been compensated for this article.