It’s a pleasure to bring you the best hidden gems in the market, especially when they’re easily affordable. Recon Technology (NASDAQ:RCON) fits that description, as RCON stock recently came down to a very attractive price point.
As you might have heard, buying where there’s “blood in the streets” can be a highly profitable strategy. However, it takes guts to buy shares of a stock when the price is low.
In fact, it takes more than guts — it also requires that you conduct your due diligence and research the company. In the case of RCON stock, you’ll want to know exactly why you’re buying it.
Fortunately, there are a number of reasons to consider taking a position in Recon Technology — including a blockchain technology angle that really sets the company apart.
RCON Stock at a Glance
If any skeptic doesn’t believe RCON stock is capable of flying high, they should look at the stock’s price action from March to early June.
During that time, Recon Technology shares catapulted from $3 and change to a 52-week high of $17.50. As it turned out, that was a great time to take profits. Folks who tried to chase RCON stock near the top were promptly punished.
By July 8, the stock was trading at $3 and change again. New investors may have a second chance to own Recon Technology shares at this attractive price level.
However, potential investors should take caution: RCON stock has a five-year monthly beta of 3.41. This means the stock has tended to move at least three times faster than the S&P 500.
Therefore, taking a massive position in Recon Technology shares is not recommended. Still, a moderately sized position could be appropriate if you believe in the company.
A Clean-Energy Leader
Don’t assume the company isn’t important just because the stock is cheap.
Here’s the rundown: Recon Technology develops and markets automated oilfield products and services for petroleum extraction in China. The company provides technology for fracturing, or “fracking,” China’s abundant shale reserves.
Recon Technology describes shale as a “clean-burning fuel” that “provides China with a vital and long-sought alternative to the massive toxic pollutants resulting from burning coal for energy production.”
In other words, this isn’t a run-of-the-mill oil and gas sector business. In reality, the company is on the leading edge of China’s burgeoning clean-energy movement.
Plus, RCON stock is the first non-state-owned Chinese oil and gas company listed on the Nasdaq Exchange.
Clearly, Recon Technology is a niche-market leader. In fact, the company provides advanced automated technologies for China’s largest oil exploration companies.
Anything but Traditional
Despite its customer base, the company cannot be described as traditional. I mean that as a compliment — Recon Technology is a market disruptor in multiple ways, and this includes a foray into blockchain.
Not long ago, Recon Technology surprised the conventional oil and gas sector by entering into a share exchange agreement with Starry Blockchain Energy. Incorporated in Singapore, Starry seeks to “leverage blockchain technology to drive sustainable energy solutions.”
So once again, the company is making a move into the clean-energy field. In this instance, Recon Technology is exchanging unregistered, restricted Class A shares with founding shareholders of Starry for 30% of the latter’s shares.
Without a doubt, Recon Technology CEO Shenping Yin sees this arrangement as highly advantageous for the company. “Recon believes that our investment in Starry will help Recon quickly enter China’s sustainable energy market,” Yin stated.
RCON Stock Can Bring Strong Returns
I’ll bet you didn’t expect to learn about a company that has a significant stake in fracking, clean energy and the blockchain. But the financial markets can be surprising and exciting sometimes.
Considering Recon Technology’s unique position in these industries, the recent drop in its stock price could be a great opportunity. If you decide to pick up some shares of RCON stock, the returns may be extraordinary.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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