Coda Octopus Group, Inc. (NASDAQ: CODA) is flying early on in the market this morning, nearly doubling in value. The gains are ultimately the result of a pact that the company has entered into with the Navy. Of course the news that the company is working with the Navy excited investors who are sending the stock screaming for the top. Today, we’ll talk about:
- The pact;
- what we’re seeing from CODA as a result; and
- what we’ll be watching for ahead.
CODA Flies On Pact With The Navy
As mentioned above, Coda Octopus Group is having an incredibly strong start to the trading session this morning after announcing news of a pact with the United States Navy. In a press release issued early this morning, the company announced that it has entered into a Navy Cooperative Research Development Agreement. The agreement surrounds transitioning the prototype of the Divers Augmented Vision Display-Head Up Display system (DAVD-HUD) into a complete system that’s ready for operational use.
Along with the news, Mr. Paul D. McMurtrie, Diving Equipment RDT&E Program Manager for Naval Sea Systems Command 0038, provided an outline plan for the development of the second, third, and fourth generations of the system at the Undersea Defence Technology 2018 conference in Scotland.
According to the terms of the agreement, CODA wand NSWC PCD, will transition the current prototype to a first-generation operation system in production no later than 12 months from the date of the agreement. Of course, should this goal be achieved, the company will be granted an Exclusive Invention Licensing Agreement to produce and supply the complete system of software and hardware to the Navy and military community. The product will be an “Authorized for Navy Use” (ANU) item, allowing it to be purchased by the U.S. Navy as well as allies. In a statement, Annmarie Gayle, Chairman and CEO at CODA, had the following to offer:
I am very excited and pleased that we have been given this significant opportunity to take forward the initial vision of the DAVD-HUD into a real-time, real-world application that will greatly advance defense and military applications. This is a significant development for Coda Octopus as it positions the Company to roll out its unique real-time 3D capabilities, both hardware and software, across the Navy – a very important group of users. This is a seismic shift as it paves the way for standardization of our real-time 3D sonar products into this very important market. Although we are on a 12-month contractual commitment to develop the first generation of the DAVD-HUD, we intend to deliver this much sooner and get this critical product into operation across the Navy Community.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of Coda Octopus Group, the news proved to be overwhelmingly positive. After all, the agreement with the Navy will help the company to quickly bring its DAVD-HUD system to market and opens the door to a massive and deep-pocketed audience. So, it’s no surprise that excited investors are sending the stock for the top in the market today. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:52), CODA is trading at $7.46 per share after a gain of $3.72 per share or 99.39% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CODA. In particular, we’re interested in following the agreement with the Navy and the development of the system the two parties are working on. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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