MechTech’s stock price is weakening even as others in its peer group are moving ahead. Longer-term we think MechTech will be fine, but short-term we see the others in its peer group racing ahead in fund raising and in corporate expansion. The market is rotating through different sectors. One trend is from Large cap growth to cyclical value names. MechTech’s price reflects profit taking and sector rotation. Money is simply rotating. The next phase for MKTY, is to announce their secondary offering results. This is in process now. The market, however, hates uncertainty. Once the pricing of the deal and amount are known, I expect MKTY to move higher.
Fundamentally, MKTY is solid financially as an operating company. They will not race ahead at breakneck speed into crypto mining, so in that respect they will lose out to market leadership in crypto mining – it is not their goal. MKTY has taken a different path into Alt-energy, Mini-data centers for Blockchain app (including Crypto mining) development. This is a much bigger arena than crypto mining alone. In my opinion, a longer and more stable business plan. Crypto mining as a solo activity is high risk. The cutting-edge mining computing equipment needs replacement every three to four years. The price of Cryptos needs to remain above operational and production costs. Crypto “mining” is similar to metal mining in being a cyclical business.
TRADERS & Technical Comment: – no doubt the stock is in a down trend.
- MACD and CMF are both trending down in confirmation of the price.
- Normally we will see both MACD and CMF turn up before we see the stock price turn up.
- Watch and wait for news as a catalyst &/or MACD & CMF turn up before adding more shares. Unless you are comfortable dollar cost averaging as we are.
- The 50-day and 150-day Moving Averages are still below the share price and rising. The long-term uptrend is still up. I know, I know, it is small comfort with the price 50% below its March high but that is the MO of small emerging companies. LOTM continues to like MKTY long term.
- MKTY only has about 5.5 million shares trading (FLOATING) so volatility is the norm.
MechTech had great news from their MTI Instruments division.
MKTY announced today that its Accumeasure HD system technology has been proven to measure distances as small as 69 picometers, setting a new bar for capacitance systems.
“This is a game changer for semiconductor and telescope manufacturers, aerospace research and development professionals, seismologists and others who depend on precise thermal-displacement measurements,” said Moshe Binyamin, President of MTI Instruments. “Our Accumeasure HD system is not only the most advanced capacitance system, but it also stands up to more costly laser interferometers, which until now had been the industry standard for achieving this level of accuracy.”
News Story lined in headline.
Eventually we expect MKTY separate EcoChain (Blockchain subsidiary) and MTI Instruments. Perhaps one or both will be sold or spun out as a separate public company. This is not expected for two or three years.
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