The only reason to trade penny stocks is for the explosive moves they can make. If a penny stock doesn’t have triple-digit or 10-bagger potential, there’s no reason to really be owning them. We at Insider Financial understand this and we spend our time hunting for penny stocks that can make big moves. We think Taronis Technologies (NASDAQ:TRNX) is one such stock.
Matter of fact, the chart setup looks similar to that of FuelCell Energy (NASDAQ:FCEL). FuelCell is a stock that we covered in September 2019 before it made it’s big run. That’s the key with trading stocks. Identify the momentum before it happens. After it’s too late and you end up holding the bag like a sucker, which is what happens to most investors in penny stocks.
Here’s a chart of FuelCell stock. We covered NASDAQ:FCEL when it was trading at just $.37 a share, 3 months before it’s run to $3!
The good news about NASDAQ:TRNX is that it also has a history of explosive moves. Have a look at its chart.
First up, here’s a little background info for those that are not familiar with the company or the stock. Taronis Technologies, Inc. (TRNX) owns a patented plasma arc technology that enables two primary end use applications for fuel generation and water decontamination. The Company holds a 7% royalty on the global use of its fuel generation intellectual property. The initial commercialized renewable fuel product license is disrupting an $8 billion global metal cutting fuel market.
The Company’s technology can also be implemented for the decontamination of waste water, including sterilizing water, eradicating all pathogens. The technology is being tested to determine if it can completely eliminate pharmaceutical contaminants such as antibiotics, hormones and other soluble drugs suspended in contaminated water. Lastly, the technology process is capable of reducing or eliminating other contaminants, such as harmful metals, as well as nitrogen, phosphorus, and potassium levels. The technology has prospective commercial applications in the agricultural, pharmaceutical, and municipal waste markets. For more information on Taronis, please visit the Company’s website at http://www.TaronisTech.com.
Taronis also owns a controlling interest in Water Pilot, LLC. The WATER PILOT® System immediately reduces water consumption and provides you with live remote consumption monitoring for long term leak protection and water asset management. An integral, client based alarm and notification system that reports to any mobile device. Water Pilot may be appropriate for a wide range of businesses or properties with a water meter. For more information, please visit our website at www.gowaterpilot.com/
One of the keys to identifying explosive penny stocks is looking for a catalyst. The NASDAQ just might have provided a catalyst for NASDAQ:TRNX. The Nasdaq has granted temporary regulatory relief related to minimum listing bid price requirements and the market value of publicly held shares due to the COVID-19 pandemic for all Nasdaq listed companies. As a result of this decision, Taronis Technologies now has until at least June 30, 2020 to regain compliance. The company said:
The Company is actively exploring a range of strategic investments, transactions and commercial relationships that it believes could satisfy the listing requirements on or before June 30th.
Look for a PR or some exciting news to hit the tape before then to get the stock over $1.
No Reverse Split for NASDAQ:TRNX
What got the market excited last week was the news that Taronis Technologies would not pursue a reverse split to comply with Nasdaq. Reverse splits are always bad. Look at what’s happening to the folks that own Chesapeake Energy (NYSE:CHK)!
The reason for not doing a reverse split is that management has cleared all material short term liabilities and the Company projects to have adequate cash on hand to fund operations for the remainder of 2020 based on the current business objectives and capital requirements. This is big news that the company has 2020 covered. This makes NASDAQ:TRNX an attractive risk/reward opportunity at current levels knowing this.
Currently trading with a market cap of just $26 million, NASDAQ:TRNX looks to be a discount entry opportunity at current levels. If the past is anything to go by, the recent price action indicates that Taronis Technologies is setting up for a big move. When this move comes, no one knows for certain, but we think it will be sooner rather than later.
Good luck to all (except the shorts)!
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Disclosure: We have no position in NASDAQ:TRNX or NASDAQ:FCEL and have not been compensated for this article.