EnWave Stock Reaches New All-Time High. Now What?
EnWave Corporation (CA:ENW – $2.60 & US:NWVCF – $1.94 & GER:E4U – €1.69) offers industrial-scale dehydration technology for commercial applications in the food, cannabis, and pharmaceutical spaces. The Company’s Radiant Energy Vacuum (“REV™”) platforms are becoming the new global dehydration standard, as they are faster and cheaper than freeze drying, and have better end product quality than both air drying and spray drying.
As the halfway point in the fiscal year has been completed with the publication of second quarter financial results, EnWave has demonstrated that the ambitious sales objectives for 2019 are entirely reasonable and achievable. Achieving a record in both revenue and gross profits is commendable but to more than double the previous quarter for both metrics is a sign of exceptional performance. EnWave is on track to continue its winning streak and will once again set the bar higher with annual record revenue and cash flow numbers.
The pipeline of new sales prospects remains primed for further contract wins, and the product lines under development and currently marketed by its license partners worldwide show great promise for additional sales growth ahead.
The agreement with Aurora Cannabis is one such partnership that appears to have great promise to build significant royalty revenue. The confidence in the partnership with Aurora is also illustrated by the decision for that company to take a direct equity ownership interest in EnWave shares. In addition, the injection of working capital from that deal has greatly improved the already strong financial position of the Company
A steady stream of positive news items has led to exceptional gains for shareholders and the stock has nearly doubled in price since the start of EnWave’s fiscal year. In fact, during the past week, the stock reached a new all-time high surpassing its 2011 peak! Volumes were high, which may indicate that institutional buyers were adding to their positions. This performance ranks EnWave among the best small cap stocks so far in 2019 and there appears to be room for further gains ahead.
Download the second quarter 2019 EnWave Corp. Company Report.
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