Cleantech Solutions International Inc (NASDAQ:CLNT) Set To Climb Higher

In our last article about Cleantech Solutions International Inc (NASDAQ:CLNT), we noted that a new agreement had been signed with Inspirit Studio, which had made the share price spike up. In addition, we remarked that the company had exhibited a strong financial situation with a lot of cash, properties, and little liabilities.For all these reasons, we recommended readers to follow the company very closely.We were not wrong in saying so.Great announcements have been released. A new agreement with Shenzhen Xinsheng NewEnergy, lithium-ion aluminum case batteries manufacturer, has been signed. The Q3 2017 results have been released as well as a conditional share swap agreement with Marvel Finance to acquire Marvel's 51% interest in Integrated Media Technology Limited - Ordinary Shares (NASDAQ:IMTE).The market has reacted to all these good announcements. Have a look at it: 1 month chart for CLNTFor those who don't know CLNT, its main activity is the "manufacturing of metal components and assemblies used in clean technology, manufacturing industries, textile dyeing, and finishing machines." The following divisions form part of the company: Dyeing and Finishing Equipment, Forged Rolled Rings and Related Components, and Petroleum and Chemical Equipment. Image from the website of Cleantech Solutions International Inc NASDAQ:CLNTRecent DevelopmentsOn November 7, 2017, the company announced that its subsidiary “EC Power (Global) Technology Limited” had signed a Memorandum of Understanding with the shareholders of Shenzhen Xinsheng NewEnergy about a potential acquisition by EC Power of not less than 51% of Xinsheng.We believe that the fact that the acquisition is not 100% sure made the market not react to the announcement. It makes a lot of sense. Also, from now on, we will need to very alert at Shenzhen Xinsheng NewEnergy. If the company finally acquires a large stake, the amount of assets of CLNT would increase and its growth would also increase. Such an event could make the share price increase.This target company is not small. It designs and manufactures lithium-ion aluminum case batteries for mobile phones. It has been doing it since 2008 and can produce 300,000 units a day. Parkson Yip, COO of Cleantech Solutions, explained that with the transaction, new know-how could be acquired. Additionally, he noted that the smartphone industry is growing at a faster pace. This is what you need to read:

"The worldwide mobile phone users expected to grow from 4.8 billion in 2017 to over 5.0 billion in 2019 and we expect demand for on-the-go mobile phone charging to remain strong. We are impressed with Xinsheng's production capabilities, advanced technology, and quality control processes. With quality and safety being top-of-mind for today's mobile phone users, having control over the production of the chargers will allow us to confidently deliver products to the market. " Source

On November 14, 2017, CLNT released its financial results for three months ended September 30, 2017. We continue to believe that what's driving the attention of market participants is the balance sheet:

• Cash: $6 million
• Total assets: $73 million
• Long Term Debt: $0 million
• Total liabilities: $6 million

On November 22, 2017, the company released that its subsidiary “Vantage Ultimate Limited” had signed a conditional share swap agreement with Marvel Finance to acquire Marvel's 51% interest in Integrated Media Technology Limited - Ordinary Shares (NASDAQ:IMTE).The reaction of the market on this announcement was very significant. The share price spiked from $4 to hit the $12 share price level. After the spike, the share price declined back to $6, as it seems that market participants sold shares to profit from the move. Some of them should have made triple digit returns in a short period of time. Not bad!Have a look and remark the large amount of shares that changed hands; more than 5 million on the 22nd. 1 month chart for CLNTWhy?We believe that the market celebrated the terms of the new contract, which seem to be very beneficial for the company. The company may acquire 51% of the issued share capital of IMT (which is valued at US$13,482,410 based on 1,348,241 ordinary voting shares at a price of US$10.00 per IMT share) by paying 19.5% of the total outstanding shares of CLNT, and a 5-year interest-free promissory note.On the top of it, it seems that the company will have access to the expertise in management systems and 3D autostereoscopic displays of Dr. Herbert Ying Chiu Lee, Founder and CEO of IMT.We encourage readers to follow this deal closely, as it is not closed yet. The agreement is subject to several conditions including legal and financial due diligence. It can be an opportunity if we follow the transaction closely.ConclusionCurrently trading with a market cap of $13 million, CLNT is an exciting story among small caps. We continue to see that the company has several catalysts that could make the share price run.But, there is more.There are short sellers in the stock. 15% of the total outstanding shares have been borrowed by short sellers, thus a short squeeze could occur in this name. Be sure to monitor this feature as well!To sum up, we continue to see upside on CLNT even after the recent jump.Be sure to check out our coverage on CLNT!We will be updating our subscribers as soon as we know more. For the latest updates on CLNT, sign up below!Image courtesy of Mike Bean via FlickrDisclosure: We have no position in CLNT and have not been compensated for this article.