Many stocks managed to record gains on Monday but the best performer was the DPW Holdings (NYSEAMERICAN:DPW) stock which soared handsomely on the back of a major announcement. It rallied strongly and delivered gains of as much as 163.9% as investors piled on to the DPW stock yesterday. In order to get a better understanding of the rally, it is necessary for investors to take a closer look at the developments that triggered it.
DPW Holdings, which is involved in investing in companies that are known for developing disrupting technology, made a major announcement with regards to one of its subsidiaries. The subsidiary in question is Coolisys Technologies Corp.
It was announced that Coolisys has created a program by way of which the electric vehicle chargers that it manufactures are going to be deployed in fast food restaurant chains in the United States. It is a major development and naturally, there was a lot of excitement among investors.
Trading volumes surged to record levels and touched 145.6 million shares. The DPW stock has an average daily trading volume of only 2.6 million shares.
The surge in the stock price attracted more investors and it remains to be seen if the DPW stock can continue to add to its gains today. It is likely that the stock is going to be on the radars of many investors throughout the rest of the week.
More About the Announcement
Before figuring out the dynamics of the rally, it is also important to look closer into the announcement made by Coolisys. As per the program that has been launched by the company, it wants fast-food franchise owners to set up its ACECool EV charger at its restaurants.
The revenue that is generated by way of advertising as well as through network usage is then going to be shared between Coolisys and the restaurant owner. The company stated that the program is going to be initially launched in the states of Nevada and California. It is also going to be launched in Canada.
Coolisys also revealed that it is all set to team up with a ‘national fast-food network’ that boasts of as many as 1000 franchises. The company went on to add that other partners are going to be announced at some point in Q1 2021. Amon Kohn, the Chief Executive Officer, stated that he expects that there is going to be a much higher demand for electric vehicles in the coming years.
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