Aqua Metals (NASDAQ:AQMS) stock price has been on the rollercoaster over the past two years. The stock soared robustly from $5 per share at the beginning of 2016, and it touched $22 per share in early 2017. Unfortunately, the Aqua Metals stock crashed in the next twelve months and dipped almost 90% from its peak level.
After finding the bottom at around $1.42 per share, its stock gained some momentum in the last few days. Aqua Metals stock price currently trades around $2.80 per share.
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Why is the Stock Significantly Volatile?
‘AquaRefining’ is the company’s business model of commercializing its ‘proprietary electrochemical lead recycling’ technology. This impressed investors.
Furthermore, the company achieved several objectives at the beginning of 2016; It made a strategic partnership with Interstate Batteries and had a 5% stake in Aqua Metals for battery technology license acquired by Johnson Controls.
These growth strategies added to its share price performance from early 2016 to the beginning of 2017.
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However, the company had missed analysts revenue and earnings estimates significantly in the last few successive quarters.
In the latest quarter, its operating loss was standing at around $5.8 million, compared to an operating loss of $3.3 million in the third quarter of 2016. The company also wasn’t able to sustain its cash position; it declined to $17 million in the latest quarter from $22 million in the year-ago period.
The Positive Momentum Could Create the Uptrend
Things might be turning around somewhat for the company as it shares have been rallying over the last couple of days. Aqua Metals recently announced that it had developed a solution to address a condition described as “sticky lead”.
The CEO has also backed its strong progress towards goals by saying: “Looking ahead, we still anticipate having all 16 AquaRefinery modules installed and operational by the end of the year and from there will transition them to continuous operation. A ramp-up of AquaRefined lead production is expected to continue through the fourth quarter of 2017 and into 2018 as modules are brought on-line and shifts are added.”
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