Kraig Biocraft Laboratories Inc (OTCMKTS:KBLB) has recorded a spectacular rise on strong volume in recent weeks, a clear sign of renewed investor interest in KBLB stock. This comes after the stock recently breached a key technical resistance at $0.1900. Moreover, the renewed investor interest in KBLB stock comes as the management has continued the good job of keeping investors informed about the progress of the company’s commercial activities.
In a short while we’ll examine the factors behind the renewed investor interest in Kraig stock. First, though, here’s a brief profile of KBLB stock.
About KBLB Stock
Kraig is an American company engaged in developing and producing spider silk fiber. The company has a subsidiary called Prodigy Textiles that operates a technologically advanced silk production factory in Vietnam.
Kraig prides itself on the significant breakthroughs it has made in developing spider silk technologies. Moreover, Kraig prides itself for being the first publicly traded spider silk company in the world.
Kraig has lately become one of the sought-after small-cap stocks. In case you’re wondering why, here are some of the reasons investors are excited about Kraig stock.
KBLB stock plans listing its stock on a major exchange
Kraig plans to upgrade its stock listing to a national securities exchange and shareholders have already given their blessings to the management to proceed with that plan. Every company out there dreams to list its stock on a major exchange like the NYSE or NASDAQ because that comes with many benefits for both the company and its shareholders. First, listing on a major exchange helps boost investor confidence in stock. Second, it increases a stock’s exposure to investors, particularly institutional investors, which both makes equity fundraising easier and increases liquidity.
Therefore, Kraig’s plan to list its stock on a major exchange is something that has excited investors. The company has already set up a team to spearhead the efforts to list the stock on a national securities exchange.
Investors see safe haven in KBLB stock as coronavirus outbreak disrupts global business
Many companies, including Apple Inc. (NASDAQ:AAPL) and Walt Disney Company (NYSE:DIS) have shut down or significantly reduced operations in China in the wake of the coronavirus outbreak in the country. But Kraig has emerged as an important safe bet in the small-cap universe for investors trying to avoid the impact of coronavirus outbreak on their investments.
Kraig has begun commercial silk production at its factory in Vietnam. As the factory enters commercial production, Kraig management has assured investors that the coronavirus outbreak in China will not affect the company’s business in any significant way. That is because of the actions the management has taken to reduce risk in the business. Firstly, Kraig doesn’t rely on China for any materials for its silk production. Secondly, Kraig doesn’t consider China a major target market for its products. For Kraig, therefore, problems in China stay in China. At this time when the coronavirus outbreak in China has caused havoc for many businesses, many investors have come to see Kraig stock as a safe bet.
Market isn’t a problem for Kraig
Kraig is on the verge of generating huge sales as it starts commercial silk production. The market for silk fibers is big and expanding and Kraig has positioned itself to take full advantage of this opportunity.
The kind of silk material that Kraig is producing has potential applications in areas such as: medical textiles, textiles used in defense and military, safe and protective clothing and performance sportswear.
In order to take full advantage of the market opportunity, Kraig’s subsidiary Prodigy Textiles has taken steps to ensure steady raw silk production at its factory in Vietnam. That means that Kraig has figured out how to produce silk during winter at its Vietnam factory even though winter is a silk offseason in Vietnam.
In conclusion, 2020 is shaping up to be a great year for Kraig and it shareholders. Notably, this is the year that Kraig is set to achieve year-round production and commercial shipment from its Vietnam factory. Moreover, this is the year that investors are hunting for safe haven stocks in the wake of the coronavirus outbreak and Kraig stands out as a strong candidate.
At this point, investors are only beginning to take appreciate the exciting investment opportunity in Kraig and you can pick up the stock at a steep discount from where it traded last summer.
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Disclosure: We have no position in KBLB stock and have not been compensated for this article.