A Diversified Technology Bargain Stock with a Likely Upside

Mechanical TechnologyMechanical Technology Inc. (OTC: MKTY) is a diversified technology company that develops precision systems and instruments for electronic gauging and displacement. The company has ties to the alternative energy industry as well as the United States military. It is a supplier of engine vibration balancing systems to the U.S. Air Force. The company also operates renewable-energy fueled crypto-mining facilities through subsidiaries.

In the second quarter of 2020, the company returned to profitability with $600,000 in operating income reported. Operating income has increased by 23% in the first half of 2020. Mechanical Technology Inc. is a shareholder of Soluna, a company that develops cloud infrastructure and datacenters using zero-carbon energy. Soluna derives 100% of its energy from renewable sources.

New investors may find this stock difficult to evaluate. It has varied interests from green cryptocurrency mining to technology development. It is also an investor in innovative energy and technology companies, so its revenue stream is extremely diversified.

Thankfully, the financials are easy to quantify. Mechanical Technology Inc. operates with a 66.44% gross margin and an EBITDA margin of 5.27%. Its high diversification could help to drive revenue in the future and improve its bottom line. With an average price target of $9.60, it’s a bargain stock worth considering, even if it’s only for the mid-term to enjoy the gains from the expected upside.

Key Data:

  • 1 Year Price Growth: 67%
  • YTD Price Growth: 57%
  • 3 Month Price Growth: 31%

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