DPW Holdings (DPW) Stock Rockets On Defense Contractor Order

DPW Holdings DPW Stock News

DPW Holdings Inc (NYSEAMERICAN: DPW) is flying in the market this morning, trading on gains of well over 40% early in the premarket. The gains come after the company announced that its subsidiary has received an order worth more than $1 milliion from a defense contractor. Here’s what’s going on:

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DPW Stock Pops On $1.283 Million Order

In the release, DPW Holdings said that Coolisys, it’s subsidiary, received an initial order from a defense contractor with a value of $1.283 million. The order surrounds the company providing comprehensive electrical and electronic systems for powering an onboard radio and other classified instruments installed and operated in customized military multi-mission vehicles.

In the release, DPW said that the customer has the option to increase the order amount to about $2 million.

The vehicles that are being produced using the company’s technology are designed to serve elite and special forces units operating in urban warfare and close quarters combat. The company said that the vehicles are designed to be airmobile, capable off-road vehicles that can handle extreme terrain in a general reconnaissance role.

DPW said that the products provided by Collisys will include an electrical system featuring electronic hardware. This hardware will be combined with an imbedded management software that’s approved and qualified by a Foreign Military Teleprocessing Branch.

In a statement, Amos Kohn, CEO at Coolisys, had the following to offer:

The recent order is the result of a long-term relationship, the company’s strong reputation for delivering custom high-reliability power solutions for the global defense industry and DPC’s expansion into this military business sector.

Why Investors Are So Excited

First and foremost, a $1 million+ order is not a small order for DPW Holdings. The company only has a market cap of about $3.5 million, and that’s after today’s gains. So, $1 million is quite a bit of money for the company, and the potential for this to become a $2 million contract is even more exciting. However, the excitement goes beyond that.

Coolisys is making a name for itself with this order. Should the company produce as expected, there are likely more orders that will come down the line from this. So, not only does the order bring a substantial amount of cash through the door now, it sets the stage for strong growth in orders later.

All in all, this is great news for Coolisys and its parent company DPW.

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