agreed that the value of the order does not seem to justify the price rise on the day and the market seems to be adjusting for that today (albeit helped by the negative market sentiment).
They tend to announce either international orders or military orders, which seems to suggest that they seem to have a monthly/quarterly run rate from their regular customers (I'm assuming mainly police departments mainly in the US), while these orders are bigger than the orders that come in on a regular basis.
The challenge for the market to value this company is that they need to demonstrate they have a baseline revenues which will enable them positive bottom line & cashflow, and then can relatively quickly ramp up to support the occasional $5-10m ballistic orders and then start landing 1-2 of these a year with decent margins to help grow EPS.....still a long way to go, but with a $20m MC, you'd think there is not too much downside from here
HCL Price at posting:
20.0¢ Sentiment: Hold Disclosure: Held
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