The past week has seen the share price of SolarWindow Technologies Inc (OTCMKTS:WNDW) nearly double.
The company’s price opened the week by trading just shy of $5.5 and ended up hitting highs of over $9. Eventually, the company closed yesterday at $8.15, still a significant leap of nearly 50% from the opening price. Furthermore, the number of shares traded during this period hit highs of over 0.5 million, quite a significant jump that was last witnessed back in September when the company experienced its last price surge.
Take a look at the above stated price action in the chart below:
With such a surge, we have decided to take a look at the value driver and debunk any myths that may have ben put out to the market regarding this surge. Below is a report on the same.
WNDW: Who Are We?
SolarWindow Technologies Inc is premised on a very simple business model and a novel technology.
Years back, the founders of WNDW came up with a breakthrough technology. The technology dubbed SolarWindowTM is a revolutionary first-of-its-kind medium which enables the conversion of ordinary windows into electricity-generating windows. Its adoption will see the conversion of buildings into power generators rather than the pure power consumers that they are today.
The company has been backing on this technology as they work at ensuring the world over understands the benefits derived from it and adopt it in their future building plans. Furthermore, they are also targeting the current buildings that are seeking to renovate their premises and install their glasses.
The Price Surge that Was
In our last review of WNDW which can be read here, the company had just undergone a price hike which by then was attributable to their deal with TriView Glass Industries LLC.
The deal ensured that WNDW begun their plans for commercialization of their glasses therefore bring this novel technology to the market. This would see the company’s value proposition understood by the market therefore have significant positive implications on their financials as well as their valuation.
The Price Surge that Is
The company recently released their year-end update to the market.
The release which was meant to show how the company has been fairing as well as prove to the market that their vision is still rock solid. Furthermore, it was to ensure that the market was in the know of the product’s durability given the output from the tests that were carried out on it.
The company’s CEO, John Conklin made the announcement in which he applauded the company’s workforce for their diligence and hard work during the period. He also added some of the breakthroughs they have had during the period, some of which have been taken to have driven the company’s share price to the top as has been witnessed recently. The main details from the announcement can be broken down into the following:
A Market for their Products
There are tens of millions of buildings globally. Narrowing this down, over 6 million commercial energy-consuming buildings in the US alone. These buildings consume nearly 40% of the $150 billion in electricity generated within the USA, about $60 billion in electrical expenses. A reduction in these expenses for any business would be a significant boost for them and this is where the value proposition of WNDW comes in.
Through their breakthrough technology, the company can augment the ordinary glass that these buildings have to electricity-generating surfaces.
WNDW expects that the company owners will significantly benefit from this product. Through this, the specific buildings will save between 30% and 50% of these energy expenses, a move which will generate about one-year financial payback. This is the fastest return published within this industry.
The market for the products therefore seems quite vast, spanning over 6 million buildings within the US alone and into the tens of millions globally. The potential for growth for WNDW, if well marketed and efficiently managed, is very high thus so is their financial upside.
The company embarked on a number of product tests so as to ensure the durability of their products.
This saw the products go through a series of simulated conditions: high and low temperatures coupled with pressure changes as well as high humidity, all meant to assess how their product would stand different ‘real-world’ scenarios.
The results from these tests came as positive to the relief of engineers and management within the company. The latter has been seen as the reason behind the share price surge as confidence in the product is now boosted and the market can now adopt and embrace these output from the company.
A lot is now expected from the over $260 million company as they tread into the future.
With WNDW coming into the market with a solution that will not only benefit businesses but also boost the drive for green energy that has been a global focus over the past decades, a lot of benefits are expected to be accrued from this new product, both for them and for the world over. Given the solution it brings, the upside for them is far from being reached and the investors within this space have yet to benefit fully from the growth that is expected of WNDW.
WNDW represents one of the success stories in the market. The entity has invested heavily in a lucrative sector and is poised for success. The solution it provides is like no other in the market; therefore, we remain very optimistic about the future share price.
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Disclosure: We have no position in WNDW and have not been compensated for this article.