Why Recon Technology, Ltd. (RCON) Stock Doubled Today
It’s a very rewarding trading day for investors in Recon Technology, Ltd. (NASDAQ:RCON) with shares up over 120%, making the stock Wall Street’s bull of the day. The reason? The Chinese oilfield software firm announced that it has signed a three-year strategic cooperation agreement with Beijing OriginWater Purification Engineering Technology (BOW). Pursuant to the Agreement, Recon Technology and BOW Engineering will cooperate to promote advanced sewage treatment technology in Chinese oilfield markets and to provide integrative solutions and services of superior quality and effectiveness to tackle industrial water pollution.
Recon Technology united with BOW Engineering to render effective waste water treatment solution for a PetroChina petroleum refinery earlier this year, and achieved superb results. Based on this prior success, both parties decided that a more comprehensive strategic relationship would be beneficial to their business development in this area.
Recon Technology CEO Shenping Yin commented, “We are excited about BOW Engineering’s unique membrane technologies and rich experiences in sewage treatment industry […] Chinese government as well as large oil companies are dedicated to protecting the environmental during oil production and seeking more efficient techniques and equipment to realize cost-saving and meet increasingly stringent environmental protection requirement. Recon Technology has provided reliable and efficient technologies to China’s major oilfield companies, such as CNPC and Sinopec, for years. Recon Technology has made some strides in oily sewage treatment for last two years. With its abundant market experience, deep insights and visions in oilfield markets, and support of BOW’s team of specialists, we believe Recon will maintain research and technological advantages and deliver better performance.”
Recon Technology engages in the development and marketing of oilfield equipment, automation systems, tools, chemicals, and field services to petroleum firms. It operates the digital oilfield project, and provides unconventional resources exploitation, surface engineering, and down-hole engineering. The company was founded by Guang Qiang Chen, Hong Qi Li, and Shen Ping Yin on August 21, 2007 and is headquartered in Beijing, China.