Just when the market has seemingly lost faith in a company, everything can be turned on its head.
Regular readers will know just how keen I have always been on this global provider of maritime domain awareness systems and technologies for security, safety and environmental protection.
In May last year its shares hit 67p on the back of major orders coming from the Far East for its MDA kit.
By May this year the shares were on their backside at 19p, as the market worried about various contract delays and investigations.
A month later they rebounded to 30p and traded in the 23p to 33p range until Friday 27th September, when they closed at 25.80p.
The next trading day, Monday 30th September, saw CEO Simon Tucker put out another of his very informative live webcasts, outlining the up-to-date information on the group and the progress of its products.
Take a look for yourself - https://srt-marine.com/about/news/september-2024/ - it is worth taking the time to do so.
The response to that webcast saw the shares close at 32p that day, then bettered last Tuesday to 36p.
Yesterday morning, SRT announced that it had been awarded a $213m contract by a sovereign government to deliver a national maritime surveillance system for that country’s coast guard.
CEO Simon Tucker stated that:
"This is a large and hugely exciting new project with a new customer in a new country, and the second contract of this scale to convert from our validated sales pipeline in the last 18 months.
This new SRT system will equip the customer with significant maritime surveillance and intelligence capabilities which will assist in ensuring the safety, security and sustainability of their marine domain.
We are honoured to have this prestigious new customer and look forward to implementing and operationalising the system over the next 2 years, as well as further projects as this ambitious customer grows their capabilities in the future."
In response the group’s shares shot up 33.3% to close at 48p, valuing the group at £108m, and that was on the back of a mega 2.62m shares being traded.
So, is SRT Marine the new game in town?
I would like to think so, and probably so too would other faithful followers of the company.
However, I would be somewhat guarded in chasing the shares until the end-March 2024 Final Results are published, possibly later this month.
Broker’s estimates are ‘Under Review’ until then, so punting the stock could prove costly if investors are in too early and get it wrong.
(Profile 14.09.20 @ 39.5p set a Target Price of 50p*)
(Profile 10.11.23 @ 39.75p set a Target Price of 60p)
(Profile 25.04.24 @ 22p set a new Target Price of 35p*)
Comments