SuperCom Ltd (SPCB)

[midastouch017]

SuperCom up 10% over last two days on Kenyan deal hopes

Eric Jhonsa, SA News Editor

SuperCom (SPCB +2.5%) has rallied strongly after a column from Security Document World stated Kenya will launch an electronic passport system in November (making it the second African country to do so), and that "an unnamed Israeli firm has won the contract to manage registration for the National Digital Registry Service (NDRS), which will see all data on individuals and their assets stored in one data bank."
A Kenyan government official says the Israeli company "was chosen because of the track record Israel has on security services." Database registration will start in February 2016, and electronic ID cards storing biometric data will be issued by October 2015.
Reacting to the report, B. Riley (recently launched coverage at Buy) states it thinks SuperCom is "likely well positioned" to win the Kenyan contract. "We also believe this ePassport opportunity mirrors many such opportunities in SPCB’s bid & proposal pipeline, and landing one or more of these big ones would likely cause us to revisit our model, as our current $1.18 EPS projection for FY ’15 factors little in the way of new wins into the equation." SuperCom has guided for over $1.20 in 2015 EPS.