DPW stock is on a roll this morning after DPW Holdings (NYSE:DPW) announced that it has received a substantial follow-up order from one of its clients. This morning, the company announced that a well-known defense and aerospace company placed a follow-up order worth $1.4 million. The order has been placed with Enertec Systems 2001, which is a subsidiary of DPW.
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The company originally received an order worth $2.9 million last year, and the follow-up order is proof that its product has passed muster. Such orders can often lead to further orders from other companies, and that could be the reason why this development is being treated as quite significant.
As a matter of fact, the management of Enertec stated that it believes that the customer in question has the capability of placing an order to the tune of $10 million or more.
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It goes without saying that this is a significant development for DPW Holdings, and the market thought so as well. Investors piled on to DPW stock during premarket trading today, which soared by as much as 32% to $2.03. It’s likely that DPW stock is going to be in focus among investors for the rest of the day.
The Chief Executive Officer of Enertec, Zvi Avni, stated that the follow-up order is a direct consequence of the sales development initiatives that have been taken up by the company over recent years.
He went on to add that the rise in orders “reinforces Enertec’s strategic focus on delivering complex solutions for the defense and aerospace industry, both at home and abroad.” Enertec is a part of DPW Holdings’ global defense business, and the latest deal could eventually make the subsidiary a substantial revenue generator for its business in the long-term. The surge in DPW stock this morning could be a sign of things to come.
What do you think?
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