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Why Is Laser Photonics (LASE) Stock Up 40% Today?

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  • Shares of Laser Photonics (LASE) stock skyrocketed on Thursday morning and into the afternoon hours.
  • A major blue chip used one of Laser Photonics’ cleaning systems.
  • LASE stock also enjoys momentum from a significant government contract.
LASE stock - Why Is Laser Photonics (LASE) Stock Up 40% Today?

Against a broader market environment that got off to a slow start, Laser Photonics (NASDAQ:LASE) showed how it was done, with LASE stock shooting up 40%. Coca-Cola (NYSE:KO) undergirded the big move, with Laser Photonics disclosing that the soft-drink giant will use one of the company’s laser-cleaning systems.

According to the accompanying press release, Coca-Cola will specifically deploy the CleanTech Handheld LPC-50CTH Laser in its manufacturing facilities. Laser Photonics describes the device as an “air-cooled pulse laser system, perfect for roughing and finishing nearly any surface.” Additionally, the CleanTech can target “small areas requiring delicate cleaning, de-painting, and other surface preparation operations.”

Even better, the system offers significant conveniences. Integrated with microprocessor controls, CleanTech requires no personal computer involvement. Further, the system goes online immediately following a key activation.

“Coca-Cola’s use of our CleanTech Handheld Laser Blasting system in one of its many manufacturing plants is yet another proven use case for our technology. Our system allows them to reduce the preparation time and increase throughput speeds,” noted Laser Photonics CEO Wayne Tupuola.

“Additionally, by removing corrosion from its plastic bottle molds, we are helping increase plastic bottle manufacturing yields and expanding the life of the molds used in this process. With our foot in the door, we can now focus on further penetrating similar and new use cases within the organization,” Tupuola added.

LASE Stock Is on a Roll

Beyond the Coca-Cola announcement, LASE stock earlier soared above the rather dour market sentiment when the underlying company disclosed receiving an order from the U.S. Navy. On Oct. 11, the Navy requested delivery of LPC-1000CTH CleanTech Laser Blasting System. Featuring an integrated water chiller, the LPC-1000CTH will focus on submarine maintenance, repair and operations (MRO).

“We believe the U.S. Navy can benefit significantly from our CleanTech Laser Blasting systems in its $22 billion annual fight to control corrosion across the fleet. This unit will allow the Navy to develop standard operating procedures and processes for using CleanTech Laser Blasting systems for corrosion control,” Tupuola stated at the time.

On the day of the announcement, LASE stock gained over 44% on volume of 69.2 million shares, according to MarketWatch.

While an intriguing market idea, investors should know that LASE stock still carries significant risk. As MarketWatch noted, the “company went public on Sept. 30, and the stock closed as low as $1.87.” That translates to 62.6% below Laser Photonics’ initial public offering (IPO) price.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/10/why-is-laser-photonics-lase-stock-up-40-percent-today/.

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