Arotech Corporation (NASDAQ:ARTX) Dips As Investors Book Profits
Arotech Corporation (NASDAQ:ARTX) after a 7 day bull run at the markets, which saw its market valuation gain by close to 69 percent, post the announcement by its management that its newly designed iron flow battery’s were a major success in their lab tests has finally stopped to take a breather yesterday. The stock reversed course and shed close to 20 percent of its recent gains to settle at 24 percentage points below its 52 week high it registered during the bull run. While there were no adverse announcements by the firm to trigger this selloff, it can be safely assumed that the investors decided to book profits now that the stock seemed to have lost some of the forward momentum.
Paradigm Shift If Battery Prototype Works
The massive investor interest in the stock occurred due to the huge potential its new technology batteries hold to the defence and the power sector. If the iron flow technology can be replicated into a prototype by Arotech Corporation (NASDAQ:ARTX) then it would be a paradigm shift in the way power is stored and accessed in a power grid. The firm believes that it is on the cusp of making a prototype which would greatly reduce the costs of power storage and transport, while increasing the performance and efficacy of power grids.
The huge positive impact this technology can have on the firms prospects can be gauged by the press release authored by Arotech Corporation (NASDAQ:ARTX) Chairman and CEO Robert S. Ehrlich in which he is quoted to have said that, “We are very pleased with the results from lab tests on this new technology, which opens a huge new market for us. While flow batteries themselves are not new technologies, with over fifty flow batteries installed globally as at the end of last year, our design uses a patent-pending iron chemistry providing the highest ROI, with the lowest total lifecycle, capital and maintenance costs”