Red Cat Holdings Inc (RCAT) Stock Sees Price-Volume Breakout: Time To Buy?
Drone technology companies have come into focus among many investors in recent times and it is easy to see why. The drone industry is expected to grow quite rapidly in the coming years and hence, many investors are now looking into a range of companies that are involved in the sector.
One of the companies that could be work looking into is the drone technology solutions provider Red Cat Holdings Inc (NASDAQ:RCAT). Yesterday, the Red Cat stock was in sharp focus among investors after the company announced that it reached an agreement with regards to the acquisition of the automated aerial vehicle technology company Teal Drones.
It could prove to be a major acquisition for the company and hence, it was no surprise that the stock rallied by as much as 605 yesterday on the back of considerable interest. The financial details of the deal were not disclosed by either party; however, it did emerge that the entire deal has been conducted in stock.
Now that Teal Drones has been added to Red Cat’s portfolio, the company is now going to have a wider range of offerings for its clients in the United States and Canada. Jeff Thompson, who is the Chief Executive Officer of Red Cat, stated that this acquisition is going to help the company in easily moving into the government and enterprise sector. Teal Drones already has deals in place with the Department of Defense and that could prove to be a major positive for Red Cat in the long run.
Asia Broadband Inc (OTCMKTS:AABB) Stock Continues to See Profit Booking: What’s Ahead?
The reduction in the number of outstanding shares can result in the stock of a company going one way or another but unfortunately for Asia Broadband Inc (OTCMKTS:AABB), it had a negative effect on its stock.
Yesterday, the company announced that its board of directors and the higher management concluded the retirement of as many as 120 million restricted common shares. The shares were retired to the treasury. It is a significant development for the company, considering the fact that Asia Broadband retired 13 million extra outstanding shares in the company than had been announced previously in May this year. However, in this regard, it is perhaps important to point out that the company expects to retire more shares in the future.
It is a part of Asia Broadband’s initiative to unlock more value for its shareholders. When the number of outstanding shares gets lower then it usually leads to a spike since the shares become rarer. However, the company’s actual shareholders were not particularly thrilled with this move from Asia Broadband, and the stock actually tanked by as much as 10% yesterday.
It is not going to be interesting to see if the stock can actually make a recovery over the coming days. Asia Broadband also noted that later on this week it is going to be able to provide an update with regards to the progress that has been made in the development of its cryptocurrency exchange project. It is one of the more ambitious projects at Asia Broadband at this point.