Why Aqua Metals’ stock jumped 17% in 2 days

What happened

Actions of the lead-acid battery recycler Aquatic Metals (NASDAQ: AQMS) jumped by nearly 15% at the start of the session on the Nasdaq Monday before dropping to around 5.3% at 1:30 pm Even with that smaller gain, Aqua Metals stock has risen more than 17% in its last two trading days.

And Nasdaq Stock Exchange is to thank for that.

Image source: Getty Images.

So what

In the middle of Friday’s trading day, you see, Aqua Metals announced that it had received a notification from Nasdaq regulatory staff that it was once again in full compliance with Nasdaq rules to maintain its stock exchange listing.

For a while, this had been in doubt because Aqua Metals shares had been trading below $ 1 off the share price for most of 2020 – even before the coronavirus pandemic plunged. economy in recession. On January 23, 2020, the company received a notice from Nasdaq advising that, unless it achieves a share price of over $ 1 and holds it “for at least 10 business days consecutive ”, his actions could be canceled.

Now what

Buoyed by investors’ hopes that the company will benefit from the popularity of rechargeable batteries, Aqua Metals stock broke the $ 1 threshold in November of last year, however. A new recycling partnership with BASF, announced in January, and plans to expand lithium-ion battery recycling, announced in February, have kept Aqua Metals shares on the rise in 2021 – indeed, they topped $ 6 per share last month.

True, Aqua Metals has yet to demonstrate to investors that it can make a profit on these new ventures. For now, however, it appears the immediate danger of radiation has passed.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

About Roberto Frank

Check Also

5 Types of Investments Americans Use to Save for Retirement

Dean Drobot / Shutterstock.com We all want a big nest egg. How we get one …

Leave a Reply

Your email address will not be published.