The signing of new deals almost always brings the stocks of the concerned companies into sharp focus, and hence, it would not be a surprise if the Homerun Resources Inc. (OTC: HMRFF) stock gets strong attention this morning. The company hit the news cycle after it made an announcement about an offtake agreement that it had signed with Balfar Solar.
The Agreement
In the news release, it stated that it had signed a non-binding offtake agreement with Balfar Solar, a reputed manufacturer of solar panels in Brazil and ranked among the top three manufacturers in the industry. Balfar currently sources its panels through imports and seeks to source solar glass that is manufactured in Brazil by Homerun Resources. In the news release, it was announced that Homerun Resources would supply 100,000 tons of solar glass a year, and that would begin with the beginning of production at the Homerun Solar Glass Plant.
Joint Venture Talks
However, that was not all. It was also revealed in the news release that the two companies had also started discussions with regards to a potential joint venture. The JV in question would be related to Balfar’s solar module business, it was revealed.
Key Quote
“Homerun is now recognized as a growing vertically integrated solar enterprise by the key domestic players in the Brazilian solar industry. This agreement opens the door for our continuing vertical integration into the sector, supporting our value creation strategy,” stated Armando Farhate, COO of Homerun.
Technicals
| +/- EMA(20) | 0.79 (+14.82%) |
| +/- SMA(50) | 0.82 (+10.62%) |
| +/- SMA(200) | 1.04 (-12.78%) |
| 5-Day Perf. | +21.76% |
| 1-Month Perf. | +14.91% |
| 3-Month Perf. | -22.14% |
| 6-Month Perf. | -29.68% |
| YTD Perf. | +2.07% |
| 1-Year Perf. | +124.42% |
| RSI(14) | 65.3 |
| ATR(14) | 0.05 |
| ADX(14) | 21.96 |
