Following the announcement of a fresh brand strategy to capitalize on the growing interest for the flexible, crushable, water resistant and wearable lighting technology product named Elastolite, shares of Oryon Technologies (OTC: ORYN) surged by over 12% in the first hour of trading on renewed buying interest.
The Texas-based Elastolite manufacturer commercialized electroluminescent lighting technology after acquiring corresponding patents and intellectual property in the year 2002. The company hogged the limelight when it licensed the technology for backlighting the keypad of over 125 million mobile phones including Motorola RAZR. Also, renowned manufacturers like Nike, Lands’ End and Marmot Mountain use Elastolite regularly for their apparels. The Hollywood film industry recognized the innovation by making use of Elastolite for costumes in the blockbuster film “Tron Legacy” and in the television series “Terra Nova”.
Oryon currently concentrates on the textiles, sports and safety goods market as its offers higher volume and profit potential. With over $250 billion worth goods being sold in the above-mentioned categories every year, Oryon hopes to take a good slice through its patented Elastolite. With the electronic industry poised to grow at 32.6% per annum to reach $47 billion by 2018, Oryon sees immense opportunities in the new generation lighting technologies as well.
To meet the growing demand, Oryon announced on September 10, 2012, that it has sent its senior management to China for realizing the plans of mass production. On September 12, 2012, the company was selected to provide custom designed corporate apparel for a major U.S. aerospace manufacturer. With growing interest for the product from advertising, textile, footwear and membrane switch industries, the company announced on September 17, 2012, a new brand strategy aimed at positioning Elastolite as an international brand and supporting upcoming 2013 international marketing and brand recognition programs. The strategy portrays the technical aspect and uses of Elastolite in a detailed manner through visual medium. The company believes Elastolite is a disruptive technology that will provide access to new markets and facilitate the development of an entirely different range of products.
Direct global media issued a special research report on Oryon, which estimates a conservative near-term target price of $2.50 per share and a long-term target of $4 per share. Earlier in the month of May 2012, the stock was trading at $0.75 per share. A $4 million campaign triggered a rally that doubled the share price in less than a month. However, as it usually happens, the price soon receded to its original levels. With a series of favorable news that came out in the past week, the stock has risen again to around $1.00. Given the previous experience of a slide back to original levels, it is too early to comment on the impending price action.
Oryon ended the day at $0.90 per share, up $0.07 or 8.4%, on a volume of 1,558,091 shares.