Ascent Solar Tech (NASDAQ: ASTI)
Ascent Solar isnt having the best of days in the market today. However, if youve watched the stock closely, chances are that youre not concerned in the least. The reality is that regardless of todays downward movement, ASTI is likely to head up moving forward. With all of the upward activity weve seen on the stock lately, it only makes sense that we would have a bad day in the mix. Today, well talk about what has caused the upward motion weve seen on the stock recently, why ASTI is declining today and what we can expect to see moving forward.
Why Has ASTI Been On A Bullish Run?
As mentioned above, Ascent Solar has seen quite a bit of upward activity as of late. This bullish movement in the stock was caused by a new, very important contract. The contract is known as the GSA Schedule 56 contract and is granted by the United States Federal Government. As a result of being granted the Schedule 56 contract, ASTI is likely to see a massive increase in sales because under this contract, its products become easier to purchase by customers like federal agencies, all branches of the US Military, the US Forest Service and much, much more! All of whom have a direct need for products created by Ascent Solar. In a recent statement, SVP and COO at Ascent Solar, Rafael Gutierrez had the following to say
“Ascents GSA Schedule 56 contract unlocks a large and previously untapped potential revenue opportunity. The military applications for Ascents lightweight and durable solar products are numerous, particularly considering the MilPak platform, but there are a multitude of other applications for Ascents products ranging from disaster relief to use by the US Forest Services”
Because the new contract is likely to cause a massive increase in sales and revenue for ASTI, its only natural that the stock climbs as a result of the news.
Why ASTI Is Down In The Market Today
When it comes to todays activity, the reality is that it has very little to do with ASTI. In fact, its a market wide downtrend. Just take a look at the market as a whole at the moment. If you do, youre going to see a sea of red. Unfortunately, Ascent Solar just isnt immune to the market wide struggles today. Nonetheless, I believe that this is going to be a relatively short term problem. In fact, even if the market were to be down tomorrow, chances are that based on the solid news surrounding the company, ASTI is likely to have a great day as it recovers from todays lows.
What We Can Expect To See From Ascent Solar Tech Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Ascent Solar. The reality is that were talking about a company that has turned solar technology into something thats small and effective enough for the US military to use. With the new GSA Schedule 56 contract we can expect to see increased sales as the government finds new applications for this incredible technology. As a result, we can expect to see increased revenue, leading to investor excitement and massive long run gains.
What Do You Think?
Where do you think ASTI is headed and why? Let us know your opinion in the comments below!
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Article Source: Ascent Solar (ASTI) Stock: Worried About Declines? Don’t Be!