Through its subsidiaries, Tantech Holdings Ltd. (NASDAQ: TANH) manufactures bamboo-based charcoal products and electric vehicles. Given that the EV industry is growing rapidly, TANH is positioning itself to capitalize on this market with a wide range of electric vehicles, midibuses, and special vehicles. After spiking 40% at the start of the month, TANH stock caught investors’ attention thanks to its short squeeze potential and industry.
TANH Stock News
Tantech Holdings Ltd. began as a bamboo technology company specializing in the R&D, manufacturing, and sale of bamboo charcoal products for industrial energy applications, cooking, heating, purification, agricultural, and cleaning uses. But after establishing a domestic and international presence, TANH acquired a controlling equity interest in Suzhou E-Motors in 2017 changing its name to Shangchi Automobile. Since then, TANH has developed its business in electric vehicle manufacturing and sales.
Despite difficulty maintaining the minimum NASDAQ bid price, TANH gained a steady stream of vehicle orders throughout 2021 and 2022 through its two subsidiaries which produce and sell street sweepers and other electric vehicles. In July, TANH’s subsidiary began accepting orders for its driverless and autonomous street sweeper. While the company has produced medium-sized fuel midibuses for the Middle East, the Philippines, and Ecuador, it has recently attracted attention for its sale of twelve driverless streetsweepers in December.
It’s subsidiary – Shangchi Automobile – is home to a 42,000 square meter manufacturing facility with an annual production capacity of 4,000 passenger cars and 1,000 vans. Moreover, TANH owns a 20,000 square meter workshop with a complete production line for the assembly and modification of its vehicles.
Given its focus on the EV sector, TANH could benefit from growing customer demand for its portfolio, which is why TANH’s CEO Wangfeng Yan is bullish that “the positive momentum will continue to build as we move through 2022 given the numerous catalysts we are benefitting from”.
With an EV portfolio covering over 10 models of buses, minibusses, and garbage sweepers, Shangchi’s EVs are used in various sectors like tourism, sanitation, and public services. On this note, TANH ‘s subsidiary received an order for 10 midibuses from a Nigerian customer – which the company expects to deliver in Q2. Following this, Shangchi received another order for 10 midibuses from Ecuador which will be delivered by May.
But in order to facilitate these growth plans, TANH held a public offering in March – issuing 20 million shares and pre-funded warrants at $.5 per share to raise $10 million in capital. Its underwriters executed their option to purchase an extra 15% of its shares, purchasing 2.8 million shares and increasing the offering proceeds to $11.4 million.
However, this offering followed TANH’s 1-for-10 reverse split to regain compliance with NASDAQ and maintain its listing. By doing this, TANH reduced its OS from 63.9 million shares to 6.3 million shares and its AS from 600 million shares to 60 million shares.
While this reverse split helped TANH maintain its listing, the public offering resulted in a 69% drop. Currently near bottom with a TANH stock price of $.49 after its roughly 40% run – some are looking for a swing play considering its low float of 14.8 million and the recent success of MULN stock as a short squeeze candidate.
Media Sentiment
@AdnansArk see’s TANH’s short squeeze potential
Technical Analysis
TANH stock price is currently $.49 following its 40% spike. TANH stock shows a main support at .40 and at .549 and a stronger resistance at .686. The RSI is cooling off from earlier overbuying at 56 while accumulation remains steady. The MACD is bullish and moving to the upside.
While TANH stock dropped notably due to the offering, many investors remain bullish on the company’s potential at this dip price. TANH stock could gap up from .636 to .685 if it rebounds. As is, some investors are holding it as a swing play in the hopes of a recovery.
TANH Stock Forecast
As the company continues developing its buses and the rest of its EV portfolio, TANH is in a prime position to capitalize on the bullish sentiment for EVs. With each of its third generation of driverless and autonomous sweepers tagged with a manufacturer’s suggested retail price of RMB 300,000 or $47,086 per vehicle, TANH could benefit from increasing demand for its vehicles
Considering that the company is already operating and brought in $42.28 million in revenue during 2020 – down 14.11% from the year before – many investors believe that TANH stock could see a rebound from the dip. But it is worth noting that TANH has been stuck in a downtrend since November 2020.
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