Pyrogenesis is a big part of my portfolio right now and it got hit hard by the Corona panic just like pretty much everything else, going from the low 40 cents price range down to the low 20’s. Economic panics are generally not friendly to startup companies selling capital equipment like Pyro as their customers will generally be quick to cut spending. This has had me feeling a bit nervous, but I continued to hold and now finally got one of the two good news items I have been waiting for.
Pyrogenesis finally after much delay as received the first payment from it’s large Drosrite contract. It was revealed that the last extra part of the delay was due to COVID-19 since people were not working in the bank in Saudi Arabia and they payments had to be sent over a different method than the one preferred. All this aside though there was never any real doubt that this payment would arrive and now that it has PYR doubled in price gaining back all of it’s Corona Virus losses and is back to around $0.40. This is the price at which I first recommended it on this blog. Having a stock go back to it’s pre-virus price in this environment is actually a pretty good result all things considered. Had the Corona Panic not occurred the price would probably be back up to the $0.60 – $0.70 range, but we will just have to wait for the crisis to be over.
The second expected good news item on signing the Aircraft Carrier deal with the U.S. military looks like it’s on its way based on this interview with the CEO. With the U.S. government keen on providing stimulus it is expected that they will direct the military to speed up the signing of contracts and get people working. I don’t think the CEO of Pyro would be saying this without there being a very good chance of it being true. Hopefully in the next month or so this deal gets signed and then the two items holding back the stock price that I identified will be removed and Pyrogenesis will be minting profits.
The last good item of news is that Pyrogenesis has been deemed an essential service and is remaining open and operational. This ensures they will keep on doing business and making us money.