I’ve written quite a bit about Techprecision (TPCS.OB) over the past few months (see posts here and here). The company has announced a number of large sales orders in the recent months, and remains poised to capture strong tailwinds across a broad range of industries.
Recent Sales Announcements
- $1.2 Million Purchase Order from New Solar Customer
- $1.19 Million Defense Contract Order
- $900,000 Order from CleanTech Customer
- Continues Accelerated Booking Trend with $1.25 Million in New Orders
For some perspective, the company had revenues of $28m last year – within the last month, they have announced $4.5m in new orders.
Even better, the orders are broadly diversified across a range of industries including Solar, Defense, Medical, and Industrials.
One of the biggest risks with TPCS has been a major reliance on solar (namely their largest customer, GT Solar), so this diversification is a welcome sign.
The $1.2m solar order is also exciting, as it’s the first order out of the new Chinese subsidiary. According to the press release,
“As this customer ramps, the projected volume in two to three years has the potential to exceed the revenue of TechPrecision’s largest current customer.”
A year ago, GT Solar accounted for approx. 30%, or $7m of the company’s backlog, a glimpse at how much this new customer could be worth as it ramps up.
New Investor Presentation
Techprecision also offers a new investor presentation on its website, updated as of March 2011:
The stock has been very volatile over the past week, which could have something to do with the earthquake in Japan and subsequent nuclear scare.
While nuclear is a targeted segment for TPCS, less than 1% of 2011 YTD sales occur in this segment (6.28% in 2010).
The stock price has also been hampered as the two insiders (Youtt and Levy) continue to sell shares. While I’d much prefer insider buying, both directors have been selling all year, regardless of the market price.
This short-term volatility does not affect the long-term prospects for the business.
Techprecision possesses a solid advantage with its history of advanced manufacturing to benefit from some heavy tailwinds in its major industry targets.
I remain long (despite the volatility).