Harnessing the power of the ocean is something many companies are increasingly looking to do. One such company, Eco Wave Power (NASDAQ:WAVE) is seeing its stock price surge in today’s session. At the time of writing, WAVE stock is up more than 100%. However, at today’s peak, this stock nearly tripled intraday on very heavy volume.
This trading activity appears to be a direct result of a press release put forward by the company. Eco Wave Power announced that “a major energy company” selected the company to conduct a feasibility study on its core technology. This study is aimed at determining which locations may be best for its technology within the U.S. and around the world.
With impressive potential in the U.S. market (wave-related energy sources could power as many as 130 million U.S. homes), this is a massive potential opportunity. Let’s dive more into this announcement and why the stock is flying high today.
WAVE Stock Surges on Wave of Interest in Renewable Energy Option
Wave’s recently announced feasibility study will review the pros and cons of deploying the company’s technology at 77 sites on the U.S. coastline. This study will also include a proposal for a five to 10-year roadmap for wave energy commercialization in this key market.
With some strong results already being seen in Eco Wave Power’s home market of Israel, rapid adoption stateside could be the long-awaited catalyst investors are looking for. Still a very small-cap company, with a market capitalization of just $15 million after today’s surge, WAVE stock is one of those higher-risk, high-upside bets that could be an asymmetric play for long-term growth investors who believe in this technology.
Now, it’s just a feasibility study that’s been announced. No details on the energy company that commissioned the study were provided (that will reportedly come later in Eco Wave Power’s upcoming 20F report). So, there’s plenty of risk involved with buying shares of a company that really doesn’t have a secured revenue pathway yet.
That said, WAVE stock is certainly intriguing at its small valuation, given the potential size of the addressable market this company is targeting. This is a company that’s found its way onto my watch list, and I’ll aim to provide updates as they come.
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On the date of publication, Chris MacDonald 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.
