DPW Holdings Inc (NYSEAMERICAN: DPW) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that one of its subsidiaries, Microphase Corporation, has secured a $2.1 million contract. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The new contract;
- what we’re seeing from DPW as a result; and
- what we’ll be watching for ahead.
DPW Announces New Contract
As mentioned above, DPW Holdings is having an incredibly strong start to the trading session this morning after announcing a new contract. In a press release issued early this morning, the company announced that Microphase Corporation, a division of the company’s subsidiary Coolisys Technologies, won a new contract. The contract, valued at $2.1 million was signed with a first-tier U.S. government defense contractor and surrounds the supply of sophisticated communications filters designed for use in combat warfare system components.
In the release, DPW said that Microphase has supplied earlier versions of the component to this defense contractor since October of 2015. Nonetheless, the supply under this contract is expected to start shipping in late 2018 or early 2019. In a statement, Rock Martel, General Manager at Microphase, had the following to offer:
We are committed to our customers and believe this significant, multi-year follow-on order illustrates our customers’ confidence in our ability to meet their needs. Microphase’s innovative radio frequency (RF), microwave and millimeter-wave technology solutions and products enable our customers to achieve higher performance and reliability at a reduced cost.
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, the news proved to be overwhelmingly positive. After all, the new order means that more than $2 million in new revenue will be coming into the company. As you could imagine, the news excited investors, sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:16), DPW is trading at $0.59 per share after a gain of $0.04 per share or 7.19% 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 continued work in the defense and commercial sector. We’re also interested in following the continued operations in the cryptocurrency mining space. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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