When a listed company makes a major breakthrough that could take it into a new level altogether, then there is every chance of a major rally in the shares of the company in question. That is exactly what happened with Appliance Recycling Centers of America, Inc. (ARCI), when one of its subsidiaries announced such a breakthrough news and the company’s stock reached a new 4-year high today.
Stock Jumps Big
IoT or Internet of Things connectivity is a form of technology that allows physical objects to be connected to an internet network and in a path breaking development, Appliance Recycling Centers of America, Inc. (ARCI) ‘s subsidiary GeoTraq announced that it now had that capability. It is regarded as a thing for the future and following the announcement, the stock rallied as much as 80% at it reached $8.50 in Thursday’s session. The stock made a multi-year high of $9.56 earlier in the session today and needless to say, it is quite evident that this particular development has piqued investors immensely.
The possibilities opened up by such a capability are believed to be immense and if the world does in fact get connected through IoT, then ARCI will be in a pole position to take advantage. Considering the fact that it now access to this connectivity, it will now be possible for ARCI to track devices far more easily. It will also be possible to communicate with the connected devices.
The technology is supposed to give ARCI a definite in the market in which it operates. With IoT connectivity, the company will be able to monitor devices with far more easily and also reduce the cycle time considerably, which should lead to savings for ARCI. According to experts, the coverage of IoT through mobile devices is going to be at 93% by the middle of 2019.
The subsidiary GeoTraq is still in the process of testing new modules and it is believed that at some point in the summer of 2019, the company is going to apply for certification from the regulatory authorities. GeoTraq will also participate at a global IoT event in the second week on May and the tech will get far more exposure.