Tel-Instrument Electronics (TIK) Stock: Soaring On New Order


Tel-Instrument Electronics Corp. TIK Stock NewsTel-Instrument Electronics Corp. (NYSEAMERICAN: TIK) is flying early on in the market this morning, and for good reason. The company announced that it is expecting to win a multi-million dollar contract from the German government. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:

  • The order;
  • what we’re seeing from TIK; and
  • what we’ll be watching for ahead.

TIK Announces German Government Interest

As mentioned above, Tel-Instrument Electronics is flying early on in the market today as the company believes that it will be awarded a German government contract. In a press release issued early this morning, the company announced that the German government has notified its U.K. distributor of its intent to award a multi-year, multi-million dollar contract. The contract surrounds the purchase of up to 275 TS-4530A Mode 5 test sets. According to TIK, the German government has received a protest to this planned award from an unsuccessful bidder and that this protest must be resolved bfore the contract is awarded. In a statement, Jeffrey O’Hara, President and CEO at TIK, had the following to offer:

This is the first multi-million international contract for Mode 5 test sets and provides an indication of the scope of the international Mode 5 market and the competitiveness of our test sets. We are working with our U.K. distributor and the German government to resolve the protest, and hope to have the contract issued this quarter. This pending order would entail the shipment of up to 200 test sets within the next 12 months. The Company is also in discussions with other major international customers that have evaluated our Mode 5 test sets and anticipates volume contracts to commence starting later this year as countries work to become Mode 5 compliant prior to the January 1, 2020 decertification of Mode 4 IFF. The Company is actively working to secure additional equity financing to support the planned growth in our business and we expect to have this financing in place by the end of the current fiscal quarter.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to dabble in the market is that the news leads to moves. In the case of Tel-Instrument Electronics, the news proved to be overwhelmingly positive. After all, once the dispute between the unsuccessful bidder and the German government is resolved, a new multi-million dollar order is likely to be placed, driving substantial revenue for the company. So, it comes as no surprise to see that excited investors are pushing the stock for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:29), TIK is trading at $3.90 per share after a gain of $1.30 per share or 50% 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 TIK. In particular, we’re interested in following the story surrounding the company’s continued work to close this government contract. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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