DPW Holdings Inc (NYSEAMERICAN: DPW) is headed for the top early on in the pre-market hours this morning, and for good reason. The company announced that its subsidiary has been awarded a new, multi-million dollar contract.
As you can imagine, the news excited investors who are pushing the stock on a run for the top. Today, we’ll talk about:
- The new contract;
- what we’re seeing from DPW stock as a result; and
- what we’ll be watching for ahead.
DPW Announces New Contract
As mentioned above, DPW Holdings is having a strong day in the market today after announcing that its subsidiary has been awarded a new contract. As is normally the case, the news came by way of press release in the pre-market hours this morning.
In the release, DPW said that its wholly owned subsidiary, Enertec Systems 2001, has received a new contract worth $2.9 million. The contract comes from a leading defense and aerospace OEM and surrounds the development and manufacture of a comprehensive satelite testing system for its space division.
The company reminded investors that Enertec is a leading defense and aerospace dsigner and manufacturer of advance multi-purpose electronic systems. These include customized computer-based automated test equipment and turnkey electronic solutions that are designed to perform in harsh environments and battlefield conditions.
In a statement, Zvi Avni, CEO at Enertec, had the following to offer:
This important win is the result of a multi-year sales developmental effort and reinforces Enertec’s strategic focus on delivering complex solutions for the defense, and aerospace industry, domestically and abroad. We believe we are well-positioned to pursue additional orders for similar systems from existing and new customers.
The above statement was followed up by Coolisys President and CEO, Amos Kohn. Here’s what he had to say about the new contract:
We are excited that Enertec was awarded this contract to provide a satellite testing system based on our modular test-system architecture. We believe this illustrates Enertec’s ability to work with our customers to identify their needs and demands and enhances Enertec’s reputation as an innovative provider of state-of-the-art mission computer testing equipment. This exemplifies Coolisys’ strong customer-driven ability to provide comprehensive advanced technological solutions for the rapidly expanding aerospace industry.
What Were Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to DPW Holdings, the news proved to be positive. After all, the new contract will drive nearly $3 million in revenue to one of its subsidiaries.
Considering this, it comes as no surprise that investor excitement is pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:12), DPW is trading at $0.94 per share after a gain of $0.0047 per share or 5.26% 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 new contract and other work the company is doing to expand and provide value for investors. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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