Digital Power Corporation (NYSEMKT: DPW)
Digital Power Corporation is having an incredibly strong start to the trading session today. Thanks to massive gains in the pre-market, the stock started the day off trading at more than double yesterday's closing price. While it has dipped down a bit since the open, the stock is still trading at incredibly impressive gains. Below, we'll talk about what we're seeing, why, and what we'll be watching for with regard to DPW ahead.
What We're Seeing From DPW
As mentioned above, Digital Power Corporation is having an incredibly strong start to the trading session today. At the opening bell, the stock was already trading on massive gains thanks to strong pre-market activity. Since then, it has dipped a bit, but not by much. At the moment (9:48), DPW is trading at $1.17 per share after a gain fo $0.58 per share or 98.31% thus far today.
Why The Stock Is Climbing
Before we get too deep into the details here, we need to give credit where credit is due. Our partners at Trade Ideas were the first to inform us of the gains on DPW. As soon as we received the alert, the CNA Finance team started working to see why the stock was making a run for the top. It didn't take long to dig up the story. The gains have to do with a massive purchase order received by the company.
Early this morning, Digital Power Corporation announced that it had been awarded a 3 year, $50 million purchase order. The order was placed by MTIX Ltd and surrounds the manufacture, instalation and servicing of textile treatment systems. In a statement, Mr. Amos Kohn, the President and CEO at DPW had the following to offer...
“This purchase order represents a significant business step by the Company since the order will enhance our power solution core technology business, as well as open new market opportunities... Because of our well-established international engineering and manufacturing capabilities. Digital Power Corporation is the perfect partner for MTIX Ltd. We will leverage our UK based subsidiary, Digital Power Limited, to manufacture, install and service the initial systems in the order for U.K./European based customers. Our expertise with power solution systems for the commercial and defense markets works well for the design of the MLSE(TM) system, which has components that include a sophisticated plasma and energy system...”
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on DPW. In particular, we're going to be watching as this contract unfolds to see if any developments break. Nonetheless, we'll continue to follow the story and bring the news to you as it breaks!
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