In the matter of 3 weeks in late June and into early July, TIKK was able to go on a staggering run.
From a June 17th low of $2.86, TIKK surged to a high of $4.80 on July 8th for an incredible 67% move.
But How Was TIKK Able To Do That?
This brings me back to how I opened the report. Remember what I mentioned about the two breakout champs I mentioned above?
They both had low floats.
TIKK's float, according to Yahoo Finance, is even lower...
The website is reporting TIKK to have a float of approximately 1.41Mn shares.
This is an incredibly tiny number that could lead to potential volatility when a profile releases something like positive company news.
So What Happened Back Towards The End Of June?
TIKK released this game-changing news:
Tel-Instrument Electronics Reports Net Income of $4.7Mn for FY 2020
EAST RUTHERFORD, N.J.--(BUSINESS WIRE)--Tel-Instrument Electronics Corp. (“Tel”, or the “Company”) (OTCQB: TIKK), a leading designer and manufacturer of avionics test and measurement solutions, today reported net income of $4.7Mn or $1.36 per basic share on revenues of $15.8Mn for the 2020 fiscal year ending March 31, 2020.
Read the full article here.
With this monster income news, TIKK saw a ton of above average volume push this stock up 67% in a matter of 3 weeks.
Could the next bit of positive company news set off that same type of chain reaction?
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TIKK Is An Undervalued Idea And Currently Flying Under Wall Street's Radar...
Last month, Ken Nagy from Northeast Equity Research released a report regarding TIKK's current and future outlook while providing a "conservative" $6.91 price target.
From Monday's close of $3.70, that figure provides TIKK with upside potential of approximately 86%.
Here a few quotes from the report:
"Over the past year the company has become more profi-table on the gross and operating margin line."
"The reason for this impressive growth is the Avionics Government division. The Company has won several large, competitively bid contracts from the military and has become the primary supplier for the U.S. Military, as well as the NATO countries."
"The Company’s new lightweight 4.5-pound SDR/OMNI hand-held products that should generate increased market share at very attractive gross margin levels. As the world’s first “All-in-One” Avionics Test Set utilizes true software-designed radio technology that enables it to test all common avionics functions in one 4.5-pound test set."
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Another Potential Driving Indicator Appears
Throughout the year, TIKK has multiple "test set orders" from around the world.
January 15th: Tel-Instrument Electronics Corp. Reports $1.87Mn Mode 5 Test Set Order for the United Kingdom
June 4th: Tel-Instrument Electronics Corp. Receives $1.6Mn Test Set Order (for delivery to German military)
July 20th: Tel-Instrument Electronics Reports $1.6Mn Test Set Order (for delivery to the South Korean military)
Now, the most recent test set order could become the most impressive.
Combined with the reporting of the company's 2021 Q1 results, TIKK announced this PR:
Tel-Instrument Electronics Reports First Quarter 2021 Results and Receipt of $956K Contract from Lockheed Martin to Develop a New Test Set
EAST RUTHERFORD, N.J.--(BUSINESS WIRE)--Tel-Instrument Electronics Corp. (“Tel”, “TIC” or the “Company”) (OTCQB: TIKK), a leading designer and manufacturer of avionics test and measurement solutions, today reported net income of $110K+ on revenues of $2.9Mn+ for the first quarter of fiscal year 2021 ending June 30, 2020. The Company also announced the receipt of a $956K contract from Lockheed Martin to develop a new high frequency test set for the F-35 Joint Strike Fighter.
[...]
TIC was also notified this week that it has been awarded a $956K contract from Lockheed Martin to support the F-35 Joint Strike Fighter. This is a competitively bid development contract to design a “go-no-go” test set for the F-35 advanced communication systems. The system will involve much higher frequency levels than what TIC has worked with in the past and is a testament to our engineering team who came up with a winning design concept. The contract includes eight engineering qualification test sets with an option for 50 additional production test sets upon the completion of the development program. Lockheed Martin is a key customer and we are thrilled to be working with them on this critical program. It is expected that this development and testing program will be completed within 12 months.
Read the full article here.
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Potential Driving Indicator: TIKK Has Been Gaining Momentum
At close on Monday, TIKK was trading over two lines of key potential support. They were TIKK's:
- 50-Day Simple Moving Average, and
- 13-Day Exponential Moving Average.
Finding potential support from these levels could lead to TIKK's next major move up the charts.
On top of those lines, TIKK was also closed Monday above its:
- 5-Day Simple Moving Average,
- 20-Day Simple Moving Average,
- 100-Day Simple Moving Average, and
- 200-Day Simple Moving Average.
This shows that TIKK appears to be trending in the right direction even though it has stayed off Wall Street's radar to this point.
With the next bit of big news that TIKK drops, could it finally give Wall Street the reason to take notice?
If it does, you'll want to have TIKK on your radar ahead of time.
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Your TIKK Potential Driving Indicators Recap
1. TIKK has a low float of approximately 1.41Mn shares.
2. An analyst from Northeast Equity Research has pegged TIKK with a $6.91 price target.
3. Major news all year including positive financial results and several contracts including one from Lockheed Martin.
4. As of close Monday, TIKK was trading above several key lines of potential support.
Official coverage initiated on Tel-Instrument Electronics Corp. (TIKK).
