Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB) bounce back after a minor correction has received a significant boost. The delivery of two shipments of Spider Silk Technology into Vietnam is the latest catalyst strengthening investor confidence in the stock. The stock has since resorted to trading in an uptrend after a period of consolidation followed by a selloff.
Kraig Biocraft Price Analysis
Kraig Biocraft Laboratories could be in for an impressive run in 2019 given the milestones it continues to achieve with its revolutionary silk technology. Price action indicates the stock could be on its way back to last year highs as the uptrend continues to gather pace.
Investors have already reacted to the new technology pushing the stock up the charts on the belief that the technology will be a key driver of value going forward. The stock has already breached the $0.05 mark, a critical resistance level, opening the door for it to make a run for last year highs of $0.07.
A rally followed by a close above the $0.07 level should reaffirm the uptrend, opening the door for the stock to register a new 52-week high. After the recent spike, the stock faces immediate support at the $0.05 mark. Any selloff followed by a close below the $0.05 mark could give short sellers a reason to push the stock lower as part of the emerging downtrend.
About Kraig Biocraft Laboratories
Kraig Biocraft Laboratories casts itself as a leading developer of spider silk-based fibers. The company leverages recombinant DNA technology to come up with protein-based fibers for commercial applications in the technical textile and specialty fiber industries. Its products find application in the military and police service for ballistic protection as well as in industrial applications.
Spider Silk Technology Delivery
The delivery of the first two shipments of the spider silk technology into Vietnam is a development that has ones again reaffirmed the company’s growth prospects. The delivery is a culmination of five years of work as well challenging negotiation with the government of Vietnam.
According to Chief Operating Officer Jon Rice, commercialization of the powerful technology marks an important milestone in Kraig Biocraft Laboratories business plan
“To our long-term shareholders, who have taken this journey with us, as well as our team in the US and Vietnam, who have worked tirelessly to make this dream a reality, I cannot thank you enough. As we start the New Year, full of new opportunity, we truly have something incredible to celebrate,” said Mr. Rice.
Scaling Up Production
The new spider silk technology should allow the company to be at the center of the ongoing evolution in the silk industry. In a bid to spearhead the revolution, the company is in the process of setting up a 46,000 square feet production facility in Quang Nam Province in Vietnam.
Kraig Biocraft Laboratories has already laid the groundwork for the proposed Vietnamese silk production initiative. The company is to collaborate with the Institute of Biotechnology and Vietnam Sericulture Research center to test the first ever spider silk silkworms produced in Vietnam. According to CEO, Kim Thompson, Vietnam is an ideal location for the proposed silk factory given its massive silk infrastructure and production capacity.
“The silk experts of the VSRC, working in partnership with members of our Prodigy Textiles team, will give our expansion in Vietnam a strong foundation. That expertise, combined with IBT’s facilities and capabilities, should pave the way to success, for this first-of-its-kind effort, and translate into a smooth production scale up,” said Mr. Rice.
In addition to Vietnam expansion, Kraig Biocraft Laboratories has started to scale up the production of second-generation Dragon Silk back at home. The production team has already raised tens of thousands of new transgenic silkworms at the company’s production facility in Michigan.
The company has also laid the foundation for the development of new specialty threads that will blend the performance of spider silk with other traditional materials. The ultimate goal is to come up with threads and fabrics for the performance wear and other market segments.
What Next For Kraig Biocraft Laboratories
2019 could as well be a pivotal year for Kraig Biocraft Laboratories after years of investment on the new spider silk technology. The company is ready to commercialize products from the new technology as it continues to revolutionize the silk industry.
Setting up a production facility in Vietnam all but affirms a breakthrough on large-scale commercialization of spider silk. Strengthening investor confidence in the stock thus does not come as a surprise as most of them remain optimistic of the company’s ability to generate significant value from its new technology. That said Kraig Biocraft looks like an interesting investment as it continues to bounce back after a minor pullback.
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Disclosure: We have no position in KBLB and have not been compensated for this article.