Shares of little-known Israeli-based Mobilcom (NASDAQ:MOB) are skyrocketing in today’s session. At the time of writing, shares of MOB stock are up more than 80% on news that Teledyne-FLIR (NYSE:TDY) has submitted a purchase order for SkyHopper PRO systems produced by Mobilcom. These data link systems will eventually be integrated into drones used by the Department of Defense (DOD).
Importantly, Mobilcom also noted that this is the largest and most lucrative contract received to date. Accordingly, the company (and the market, it seems) appears to believe that this order validates the company’s business model and puts it on the map.
Indeed, Mobilcom’s rather small market capitalization (under $15 million, after today’s rapid rise) means there’s plenty more upside potential where that came from. Thus, this is a stock that may have moved up the watch lists of many investors on this news.
Let’s dive into what to make of this announcement and whether MOB stock may be worth a look here.
MOB Stock Surges on Purchase Order
Mobilcom appears to view this contract as simply a stepping stone to bigger and better things. Earlier this year, the company made a strategic alliance with another prime U.S. government contractor: Mistrial. And assuming Teledyne-FLIR’s drones and Mobilcom’s datalink systems act as they should, perhaps there are more sales and partnerships that investors can expect on the horizon.
That said, the company’s management team believes that this is just the first order of many. CEO Oren Elkayam commented in the press release:
“As Teledyne-FLIR continues to win additional orders for its small-sized drone platforms with end users such as the U.S. DOD, other federal agencies, and commercial customers, Mobilicom is well positioned for more sales of its Skyhopper Pro.
We see the sales of these systems to the U.S. DOD, one of the largest and most selective procurers of technology, as a strong testament to the excellence of Mobilicom’s market leading end-to-end solutions.”
Mobilcom is an intriguing company I have to admit I’ve never looked at before this news. The company’s cybersecurity solutions which are built into drones and other robotics, make for compelling verticals and growth potential for investors. With this order under its belt, investors do appear to have something to be excited about today. I’d say that today’s move in MOB stock is likely warranted, and this is a stock I’ll be watching from here.
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On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
