OracleTrading

[Deewar25]

TIK - keep an eye on this in the morning - very low float with an additional $10m contract announced today (not PR'ed). Prior contract announcements popped it around 50% (one spiked 110%) - usually following day to 2 weeks after announcement).

Actually was weak off initial pop perhaps because of confusion of contract terms - modified how? Decreased size, additional or what??


Tel Instrument Electronics Corp., Carlstadt, N.J., is being awarded a $10,000,000 firm-fixed-price modification to a previously awarded indefinite-delivery/indefinite-quantity contract (N68335-05-D-0014) for the production of up to 450 air and shipboard/Identification Friend or Foe communication/navigation radio frequency avionics testers for the U.S. Navy. Work will be performed in Carlstadt, N.J., and is expected to be completed in Jan. 2012. Contract funds will not expire at the end of the current fiscal year. The Naval Air Systems Command Aircraft Division, Lakehurst, N.J., is the contracting activity.

http://www.defenselink.mil/contracts/contract.aspx?contractid=3717


But based on last quarterly, its clear this is above and beyond the initial 17m contract that was back in 2005.

http://www.telinstrument.com/news.php?page=News&newsid=57


As stated here in the quarterly:

The Navy has options for up to 750 AN/USM-708 units which, if exercised, would add about $14 million to Tel's backlog and to projected revenues over a several year period. The Company has also responded to a solicitation to the Navy to possibly purchase up to 450 additional units on a sole source basis. Given the unique nature of the design, this unit could also generate significant sales to other military customers, both domestically and overseas.

Essentially few people got into the stock at lower prices on initial discovery of contract, so should be little downside - any volume or official PR release should send this up fast.