What’s Driving SCON Stock so High?
Superconductor Technologies, Inc. (NASDAQ:SCON) stock is going absolutely crazy, up 70% in pre-market trading after receiving a $4.5-million program award from the U.S. Department of Energy.
The inflow of cash is a huge boon to the company that has a market cap of $6.5 million. This helped precipitate the skyrocketing of SCON stock by 64% as of early afternoon trading.
The company overall has had an up-and-down November, with a low of $1.28 per share in the middle of the month to today’s yearly high at $3.29. (Source: “Stock Update (NASDAQ:SCON): Here’s Why Superconductor Technologies, Inc. Surging 70% Today,” Smarter Analyst, November 30, 2016.)
The company otherwise has been steadily declining in terms of share prices, generally trending downward over the years. Today’s award, however, puts SCON stock up on the year overall, at about an 8.5% gain since the start of 2016.
Superconductor Technologies and SCON stock specialize in developing and commercializing high-temperature superconductor materials and related technologies.
SCON stock was selected by the Office of Energy Efficiency and Renewable Energy (EERE) on behalf of the Advanced Manufacturing Office for the award. The name of the program is the “Next Generation Electric Machines.”
“Advancing these enabling technologies has the potential to boost the competitiveness of American manufacturers and take the development of more efficient electric machines a giant step further,” said Mark Johnson, director of the EERE Advanced Manufacturing Office (AMO), in a statement.
“These technology R&D projects aim to significantly improve industrial motors for manufacturing, helping companies who use these motors in manufacturing save energy and money over the long run.” (Source: “Energy Department Announces Nearly $25 Million to Enable Innovative Electrical Motors Used in Manufacturing,” Office of Energy Efficiency & Renewable Energy, November 28, 2016.)
The $4.5 million is part of a larger $25.0 million handed out to 13 projects as part of the Next Generation Electric Machines project by the U.S. Department of Energy.