Applied UV Inc [NASDAQ: AUVI] has been gaining upside momentum for the better part of the month. In yesterday’s session, it closed the day higher by 21%, and with the markets on a rebound, it could gain more in the short-term. Yesterday’s upside momentum followed the company’s announcement that its subsidiary called Sterilumen Inc had got a purchase order for its Airocide Air Quality-Improvement System. The order was from the Dubai Creek Golf & Yacht Club Resort.
The company is the exclusive dealer of the Airocide air purification technologies that is used in the American and Middle Eastern markets. The air purifier is patented and has the capability to get rid of viruses, bacteria and mold. Commenting on the Dubai deal, Applied UV president Max Munn stated that they were happy to have landed a partnership with such a high-end result. He added that it was exciting to reveal its UV technology, while helping its partners give their clients safer environments for their guests.
With the company landing such orders, its long term revenues also stand to grow. As such, the stock could see its value rise over time, to reflect its growing intrinsic value. The stock’s value will also be supported by the fact that the technology is patented.
This means that it is uniquely positioned to grow the market share of this product with a competitive edge in the market. Growth is also supported by the fact that with the lockdowns being lifted all across the world, demand is likely to rise as well, and further add to the upside momentum for this stock.
The company’s stock value is also supported by growth in its other product offerings such as its ultra violet light disinfecting devices. Last week, the company announced that its subsidiary had been contracted to install the first UV disinfectant at the St. Luke’s Hospital in Mt.Sinai. The installation is part of an evaluation study and could see the company more of such orders in the future.
Besides the latest boost in revenues from the product sales, the company is also well capitalized, which is critical during these tough COVID-19 times. Earlier in September, the company announced that it has closed its $5 million IPO and that it had an overallotment of $750k. This means it has liquidity to invest in innovation and other aspects that can help drive up its value in the short-term and also drive up the stock price.
About Applied UV Inc
Applied UV Inc develops technologies for hospitals and the hotel industry. It is headquartered in Mount Vernon, New York.