The Sabien Technology Group Plc (LON: SNT) share price edged 6.67% after its subsidiary won a government contract to deliver its M2G Boiler Optimisation Technology across multiple sites of a significant project.
The company said that its Sabien Technology Ltd subsidiary had won the contract worth approximately £264,000. Today’s contract is the second such contract from the government department after an initial contract was announced on 8 March 2021.
Investors cheered the move, as evidenced by the initial rally in Sabien’s stock pierce, but the shares had given up all their gains and were trading lower at writing.
The pullback in Sabien Technology’s share price indicates that investors are not convinced about its prospects despite the government contract win. However, it is not yet clear why investors were unimpressed by today’s announcement.
Sabien’s prospects are pretty promising, given it has a collaboration with City Oil Field Incorporated of South Korea (COF) to deploy recycling facilities across the UK using COF’s technology.
The company is yet to announce any contract wins that will allow it to implement COF’s technology in the UK, which could be why its shares have been falling since early February this year.
Richard Parris, Sabien Technology’s Executive Chairman, said: “This contract award is further confirmation of Sabien’s ability to deliver large scale M2G rollout projects in the UK Public Sector using our new Cloud Connected devices. Using the intuitive M2G Cloud dashboard, customers and their facilities management partners can take back control of efficiency by monitoring the performance of any boiler in any boiler room from any location. This saves outage disruptions, gas consumed and CO2 emissions.”
Sabien Technology shares have fallen 21.88% in 2022 and could be lower if today’s announcement does not trigger a sustained rally, which is tricky.
Therefore, I would adopt a wait and see attitude towards SNT shares until there is a strong buy signal composed of several bullish shares.
*This is not investment advice. Always do your due diligence before making investment decisions.
Sabien Technology share price.
The Sabien Technology share price surged 6.67% to trade at 21.60p, rising from Thursday’s closing price of 20.25p.
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