Superconductor Technologies, Inc. (NASDAQ:SCON) is powering higher in the market just days after posting better than expected third quarter earnings. A 151% rally in Thursday a trading session all but came as a surprise an indication that the stock is eliciting strong interest from investors. Even with the impressive run, the stock is still shy of its 52-week high of $4.8 a share high.
Strong interest from investors comes on the chief executive officer, Jeff Quiram, reiterating that they have important strides in validating the HTS wire program capabilities.
“We significantly improved our Conductus® wire performance during the quarter, attaining approximately 80% of our goal while maintaining our target properties for mechanical strength. Once the full specification is achieved, we plan to ship wire promptly to key customers to complete existing qualification orders,” said Mr. Quiram.
Investors in the stock are slowly taking note of the fact that the government is poised to offer grants for technologies of new machines of which Superconductor Technologies would be one of the beneficiary with its high-performance conductors. The company has already teamed up with two renowned academic institutions as it looks to pursue grants for its HTS Wire Manufacturing.
Net revenues of $22,000 in the third quarter compared to $11,000 in the second quarter has all but affirmed the company’s growth prospects as it moves to market its Conductus wire. Even with revenues doubling sequentially, Superconductor Technologies is yet to replicate its performance last year. Revenues in the third quarter of 2015 stood at $91,000.
The big question now is where the stock is headed to even as the company continues to make gains on revenue growth as it looks to replicate its 2015 performance. Institutional sentiment in the stock was down by 0.27 in the second quarter from highs of 1 in the first quarter. The rally experienced in recent days could be an indication that investors are slowly coming back having taken note of Superconductor Technologies, Inc. (NASDAQ:SCON) growth prospects