PCT Ltd (OTCMKTS:PCTL) stock popped up 100% in the last session on a day that saw more than 70 million shares traded. That is the biggest single-day volume we’ve seen this year and it confirms the improving market sentiment around this stock even as other stocks fall amid worries over the spreading coronavirus.
The global stock market suffered broad selloff last week as the coronavirus continued to worry investors around the world. However, PCTL actually gained about 30% in the past week. The stock’s year-to-date gains now stand at nearly 250%.
What is exciting about PCT Ltd? The most exciting thing about PCTL currently is its connection to the coronavirus. The company has a subsidiary that makes products designed for prevention and control of infectious disease and microbial contamination. Therefore, investors are starting to notice that the coronavirus outbreak may have just created a perfect business opportunity for PCT Ltd. The kind of products that PCTL sells through its subsidiary Paradigm Convergence Technologies Corporation (PCT Corp) means it would have role in combating the deadly coronavirus and that could result in big sales for the company.
A strong balance sheet and plans to upgrade the stock listing to a major exchange are the other reasons investors are excited about PCTL. We’ll delve into more details about these and more shortly. First, here is a brief profile of PCT Ltd for those investors who may have just come across this company for the very first time.
About PCT Ltd (OTCMKTS:PCTL)
PCT Ltd (OTCMKTS:PCTL) is an American company that invests in innovative businesses and products that can generate significant profit and value for shareholders. It operates through subsidiaries. Its main subsidiary is Paradigm Convergence Technologies Corporation (PCT Corp), a wholly-owned business. PCT Corp is engaged in making disinfection and decontamination products used in hospitals, crop farms and range of other applications. It sells its products in the United States and UK.
The outbreak of the deadly coronavirus and the global scramble to stop its spread has brought more investor attention to PCT Ltd, and for a good reason. The kind of disinfectants and decontaminants that PCT Corp sells are in high demand as countries fight the coronavirus. It is for that reason that investors see a bright outlook for PCTL.
Congress requests $8.5 billion funding to fight coronavirus, promising big sales for PCT Ltd
The coronavirus continues to spread, intensifying global panic. The virus that originated in China has reached 70 countries. The virus infection has topped 90,000 cases and more than 3,100 deaths have been reported. The outbreak is also taking its toll on the global economy has airlines have suspended some flights and companies have halted certain operations. The big threat that the virus outbreak poses to life and global economy means that countries are doing everything to combat it. In the United States, for instance, Congress has requested $8.5 billion in emergency funding to fight the virus.
This comes as the virus continues to spread in the country and kill people. The coronavirus has reached 15 states and caused six deaths. It is a dangerous situation that requires swift action before things get out of control.
The coronavirus is highly contagious. It can spread through the air and contract surfaces. As such, there are efforts to decontaminate hospitals, hotels, transport systems and other public places where infections could occur. Here is where things get interesting for PCT Ltd. It products that have been proven to be highly effective in combating infectious pathogens. Here’s what PCT Ltd CEO Gary Grieco said recently about the company’s products:
“[Our disinfectants and decontaminants kill] any tested pathogen, and by that I mean bacteria and viruses.”
Therefore, the scramble to contain the coronavirus promises to generate big demand for PCT Ltd products.
OTCMKTS:PCTL boasts a fairly strong balance sheet and plans to list on a major exchange
PCT Ltd has a fairly strong balance sheet. The company has $4.6 million in assets against just less than $1.0 million in debt. In January, the company secured a financing deal for $0.5 million to fund its development programs. For example, the company wants to hire more sales people to enable it grow its revenue faster and move toward profitability quickly.
At the same time, the company plans to upgrade the listing of its stock to a national securities exchange like the NYSE or NASDAQ. That would increase its exposure to large institutional investors while making future fundraising easy and cheaper. Moreover, listing on a national exchange would increase the stock’s liquidity, which would be a big plus for shareholders.
OTCMKTS:PCTL looks well-positioned to ride the coronavirus wave. While the stock has already made big gains, it has more room to run. Trading at $0.0227 currently, the stock is still far off its 52-week highs.
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Disclosure: We have no position in OTCMKTS:PCTL and have not been compensated for this article.