Ocean Power Technologies Inc (NASDAQ:OPTT)
News And Technicals
On Wednesday, Ocean Power Technologies announced that they had entered into an PB3 PowerBouy lease agreement with Mitsui Engineering and Shipbuilding (Mitsui Engineering & Shipbuilding (T:7003)) valued at $975,000 and the project started back in March of this year. This is great news for the company as it is the first commercial agreement with MES and a potentially big market in Japan. The purpose of this deal is to try and utilize the oceans energy through OPTT’s bouy’s that harness wave energy that can then be converted into usable energy on land. Keep this stock on your radar as big moves like this tend to attract a lot of traders.
Looking at the chart you will notice that shares have skyrocketed today after this news hit the wire. Shares are currently trading at $6 as of the time of this writing after closing Tuesday at $1.53 representing a 292% spike in price. This was a very fast move that with a ton of shares trading hands so I wouldn’t be surprised to see some sort of pullback over the next few days. Ideally we would want to see it hold $4.50 with some consolidation before making another move back up. Look for resistance to come in at $7 and $8.50 while support will be met at $5 and $4.50.
CEO Comments
George H. Kirby, President and Chief Executive Officer of OPT, stated:
This first commercial agreement with MES is a significant and exciting commercialization milestone for OPT. MES has been a strong strategic partner in the development of the PowerBuoy, and this milestone will allow MES to demonstrate the flexibility of the PB3 power and communications platform in sea conditions off the coast of Japan. We believe that the deployment under this Agreement could provide access to a potentially huge market in Japan and the surrounding areas, and we’re looking forward to potentially leveraging these events with other interested parties. Market applications could include national defense and security, such as early detection and warning systems for subsea and surface threats, or oil field management and metocean applications for the oil and gas industry and scientific communities.
We’re looking forward to working closely with MES to commercialize the PB3 throughout Asia. We hope that it will serve the many markets in need of new and better power and communications solutions.
OPTT Profile
Ocean Power Technologies, Inc. develops and commercializes proprietary systems that generate electricity by harnessing the renewable energy of ocean waves primarily in the United States, Europe, Asia, and Australia. It offers autonomous PowerBuoy system that is designed to generate power for use independent of the power grid in remote locations. The company focuses on serving public and private entities, and agencies that use electricity in and near the ocean. Ocean Power Technologies, Inc. was incorporated in 1984 and is headquartered in Pennington, New Jersey.
By Sean V