In May, Recon Technology, Ltd. (NASDAQ:RCON) said its affiliate struck a deal with Beijing OriginWater Purification Engineering Technology Co., Ltd (BOW Engineering), a subsidiary of Beijing OriginWater Technology Co. Ltd. to install and provide maintenance and chemical testing services for an all-in-one wastewater treatment equipment package to an affiliate of a PetroChina Co. (NYSE:PTR) subsidiary.
Maybe there were too many affiliates and subsidiaries in the mix for traders to think the deal was meaningful at the time because shares of Recon didn't budge.
They're budging today, though, with RCON the best performing NASDAQ-listed stock on news that the Beijing-based company inked a three-year deal with BOW Engineering laying out a plan for the two companies to 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.
The new pact was underscored by the outstanding results at the PetroChina refinery a few months ago.
No new big sale, just a partnership that already was in the making. Be that as it may, market participants have jumped all over Recon stock, more than doubling the company's market cap with a run of $1.13 cents from Friday's close at $1.02 to $2.15, representing a gain of 110.4% on the day early in the afternoon session. Apparently traders are reading this new partnership as a sign of more deals to come with majors in the Chinese oil market.
