Yesterday, the Principal Solar Inc (OTCMKTS:PSWW) stock was trading within a range but at the same time it should be noted that such stocks can also break out and hence, it might be a good move to take a look at the announcement from the company yesterday.
Trading Data
On Tuesday, PSWW stock moved down by 1.52% to $0.0227 with 1.37 million shares, compared to its average volume of 1.79 million shares. The stock has moved within a range of $0.0220 – 0.0240 after opening trade at $0.0235.
Principal Solar Sharpens Strategic Focus
The company, which is involved in investing in businesses involved in renewable, tradition and clean energy spaces, announced that it had signed an agreement with IntelliMedia/Apollo Green. As per the terms of the agreement, the noted an investment into a note to a return on capital as well as interest payable. In simpler words, it is a divestment from Principal Solar and is going to lead to a fresh injection of capital into its business.
In the announcement yesterday, it was also announced that the fresh capital is going to be used by Principal Solar for the purpose making acquisitions of logistics assets. In addition to that, it is also going to be used to further advance the development agreement that it has in place with IPLTech Electric, its heavy electric vehicle manufacturing partner.
Although the stock was trading in a range yesterday, it will be interesting to see if it can see a break out at any point this week.
Key Quote
“After careful consideration, in keeping with our stated goal of leveraging environmentally responsible opportunities while maximizing stakeholder value, we have made the strategic decision to convert our investment in IntelliMedia,” said K. Bryce “Rick” Toussaint, CPA, MBA, Principal’s Chairman and CEO. “We believe that this move is in the best interests of all parties involved and stands to enhance Principal’s overall success potential.”
Technical Data
PSWW stock is trading below the 20-Day and 50-Day Moving averages of $0.0310 and $0.0444 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.0779. The stock is down 49% in the past month.
