Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading
EQTEC PLC (LON: EQT) share price has fallen 58% since the year started amid a broader selloff in renewable energy stocks. Can the shares reverse course and head higher?
Well, the short answer is yes, EQT shares can reverse course and rally much higher given the recent slew of positive updates issued by the waste to energy gasification company.
EQTEC has announced multiple projects in the last couple of months, including its joint venture waste-to-energy project in Greece, which its CEO, David Palumbo, reviewed in the past two days.
The company also acquired two waste gasification plants in Croatia, which will be transformed into Market Development Centres (MDCs), showcasing its technology's full breadth and how it can be connected to national grids.
EQTEC is well-positioned to capitalise on the trend towards sustainable energy sources as governments rush to meet their net-zero emissions targets, with most European countries seeking to be net-zero by 2035.
The company also acquired another waste gasification plant in Italy, which intends to convert into an MDC to showcase its technology to other potential clients such as governments and other power generators.
I’ve written before about how EQTEC’s new strategy involving other partners in its projects could be highly profitable over the long term. Yet, the markets seem to disagree with our assessment.
The company recently reported a loss from its continuing operations of €4.039 million in the first six months of 2021, a significant increase from the €1.846 million reported in H1 2020. However, this is expected given the company’s rapid expansion plans.
From a technical perspective, Eqtec shares are trading at a support zone tested thrice since July and could provide positive impetus to the company’s share price from now on. We could get a rally if the level holds in the future.
*This is not investment advice.
Eqtec share price.
Eqtec shares are down 58.01% this year despite positive updates. Can they reverse course?
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