Cemtrex Stock In Spotlight After A Year Of Turbulence — A Look At Some Of The Strategic Moves This Year

• The firm’s revenue for the nine months ended June 30 stood at $57.95 million, up from $48.72 million a year earlier.
• Last month, the company agreed to buy Invocon Inc., a Texas-based systems-engineering firm, for $7.06 million to help launch a new aerospace and defense unit.
• Investors are also worried about potential dilution, as the company still has adjustable warrants that could add millions of new shares.

Cemtrex (CETX) stock continued to draw investor attention on Tuesday morning after declining over 14% in premarket trading, following an explosive rally in the previous session.

The shares jumped 129% on Monday, with no obvious catalyst for the move. The stock has been highly volatile this year and has also witnessed a 1-for-15 reverse stock split completed in late September.

What Are Stocktwits Users Thinking?

Retail sentiment on Stocktwits about Cemtrex was in the ‘extremely bullish’ territory, compared with ‘bullish’ a week ago.

Over the past 24 hours, the stock has seen a 7,700% surge in retail message volume on Stocktwits. It currently has over 21,000 followers on the platform.

One user said the stock was a ‘multi-day runner’ and could easily reach $15. 

Expansion Moves

Cemtrex primarily operates in two segments. Its Security unit, led by Vicon Industries, provides advanced video management software, high-performance security cameras, and integrated surveillance solutions for enterprise, government, and critical infrastructure. Its Industrial segment, through Advanced Industrial Services (AIS), delivers expert rigging, millwrighting, process piping, and equipment installation services to manufacturers nationwide.

Its revenue for the nine months ended June 30 stood at $57.95 million, up from $48.72 million a year earlier. Yet its loss widened to $24.65 million, due to its warrant liabilities.

Last month, the company agreed to buy Invocon Inc., a Texas-based systems-engineering firm, for $7.06 million to help launch a new aerospace and defense unit and expand its addressable market. It also plans to develop robotic applications for agriculture and construction, and has said those could eventually generate up to $100 million in revenue.

The company has also delved into cryptocurrencies earlier this year by acquiring about $1 million in Solana tokens. It stated that the move was to bolster its security offering through a blockchain-based layer.

With a public float of just 672,790 shares and a short interest of 14.1%, the stock could face bouts of volatility. Investors are also worried about potential dilution, as the company still has adjustable warrants that could add millions of new shares. Even after Monday’s rally, the stock is still down 83.8% for the year.

Also See: Red States Are Powering America's Solar Boom — Even As Trump Tries To Slow 'Ugly' Tech Down

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on