Zoltek Makes Deal, Shares Soar (ZOLT, MGA)
Specialty fiber maker Zoltek Companies Inc. (NASDAQ: ZOLT) has signed a deal with auto parts manufacturer Magna International Inc. (NYSE: MGA) to develop low-cost carbon fiber sheeting molding compounds for the auto industry. To date, Zoltek’s carbon fibers have been…
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Zoltek’s CEO said:
We have long regarded the automotive industry as the largest potential user of low-cost, high-performance carbon fibers, and it is a vital part of our strategy as the largest producer of these fiber[s] to work closely with leading suppliers to the automotive industry of parts and sub-systems.
Magna, with a market cap of more than $11 billion, certainly qualifies as a leading supplier. The two companies did not provide specific details of their agreement.
Zoltek’s shares are up nearly 17% at $11.90 in a 52-week range of $5.60-$15.01.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
