DPW Holdings Inc (NYSEAMERICAN: DPW) is flying early on in the market this morning, and for good reason. The company announced news with regard to the volume of orders its subsidiary Coolisys has received to date, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:
- The update;
- what we’re seeing from DPW as a result; and
- what we’ll be watching for ahead.
DPW Shows Strong Sales In Coolisys Subsidiary
As mentioned above, DPW Holdings is having an incredibly strong start to the trading session this morning. The gains are ultimately the result of an announcement surrounding its Coolisys subsidiary. In a press release issued early this morning, the company announced that Coolisys has received more than $5 million in orders to date surrounding the development and manufacturing of its cutting-edge medical automated test and calibration equipment. The orders have been placed through the company’s wholly-owned subsidiary, Enertec Systems.
In the release, DPW reminded investors that Enertec Systems is Israel’s largest private defense/aerospace manufacturer of advanced specialized electronic systems. However, in the second quarter of 2018, the company launched a new division under the guidance of its parent company, DPW Holdings, known as Enertec Medical. As the name suggests, Enertec Medical focuses on product development and the engineering of medical technology and devices.
In the release, the company said that in the second quarter of 2018, Enertec Medical received orders totalling $2.455 million surrounding precise calibration solutions for cardiovascular catheters that enable physicians to treat a range of cardiac conditions. In a statement, Amos Kohn, President, CEO and Chairman at Coolisys, had the following to offer:
When Coolisys announced it was acquiring Enertec Systems, Coolisys based much of its revenue growth and expansion of its product portfolio by leveraging Enertec’s talented engineers and professionals and their extensive knowledge base driven by Enertec Systems’ ability to deliver world-class products and advance technology solutions.
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 DPW Holdings, the news proved to be overwhelmingly positive. After all, in the short time Enertec Medical has been around, the company has already sold more than $5 million in Coolisys products designed for the medical space, suggesting that the demand for these products is high and sales will likely continue. So, it’s no surprise that excited investors are sending the stock on a run for the top. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:22), DPW is trading at $0.58 per share after a gain of $0.042 per share or 7.85% 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 DPW. In particular, we’re interested in following the story surrounding the company’s subsidiaries, Coolisys and Enertec Systems, and how these subsidiaries continue to drive substantial revenue for the company. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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