ClearVue Technologies Limited, favourable regulation and policy directions provide a boostTeam Veye | 02 Mar 2021 ASX - CPV
ClearVue Technologies Limited (ASX: CPV)
Smart building materials company ClearVue Technologies Limited (ASX: CPV) (ClearVue or the Company) on 25 February 2021 provided its Consolidated Interim Financial Report for the half year ended 31 December 2020 and the following market update since its last Quarterly Update (announced 29 January 2021).
- Glazing of PV IGUs at Murdoch University Greenhouse Completed
- ClearVue PV IGU’s delivered for Greenhouse in Japan
- Progress continues on Jinmao relationship and villa in Hebei province China
- ATCO Mining Hut (‘Donga’) Trial at Murdoch University
- New Research Program in Quantum Dots.
(Chart source: TradingView)
During the December quarter, ClearVue remained focussed on sales and marketing activities in Australia, Northern Europe and North America - with a particular emphasis on the United States of America and New York City due to favourable regulation and policy directions.
Its focus on the US market has increased in the last few months as the Biden government has a clear and stated intention to focus on the US responding to the climate crisis and has also released a stated plan to make an accelerated USD $2 trillion investment over the next four years including into a wide range of activities intended to reduce the carbon footprint of US building stock 50% by 2035. A part of this plan includes upgrades to 4 million buildings and to weatherise 2 million homes over those four years including a mandate to install more efficient windows into residential and buildings.
In addition, the US Federal Solar Investment Tax Credit (ITC) was extended at the end of December 2020 such that the US’ 26% investment tax credit for solar systems will now continue during 2021 and through 2022, dropping to 22% in 2023 and dropping further to 10%* in 2024. The ITC reduces the total cost of a US solar photovoltaic installation project including the balance of system costs such as inverters, batteries, wiring and installation and may be available for certain US projects utilising ClearVue’s PV IGUs. (Data Source – Company Reports)
The Company is increasing its focus on the US market as the Biden government has cleared its intention to focus on the US response to the climate crisis. US has also released a stated plan to make an accelerated USD $2 trillion investment over the next four years including a wide range of activities intended to reduce the carbon footprint of US building stock 50% by 2035 which is likely to benefit CPV. Further, the extension of the Investment Tax Credit reduces the total cost of a US solar photovoltaic installation project. As earlier reviewed, ever since it broke out of the upper trendline at the end of August, the stock has not looked back. It has been comfortably crossing its resistances. It is moving in a "Higher High" formation on a price chart. Positive crossover on MACD and positive divergence on RSI are indicating strong upside momentum in the near term. Managing to clear the daily resistance at $0.54, can have the potential of growing significant strength in the medium to long term. “Buy” was given to “ClearVue Technologies Limited” at the price of $0.125 on 8 May 2020 and at $0.255 on 21 September 2020. It has already given a return of 276% in less than ten months and also grew by about more than 84% less than six months till now. Veye maintains a "Hold" on “ClearVue Technologies Limited” at the current price of $0.47
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