Optex Systems Holdings, Inc (OPXS) Highlights: . – OPXS reported what appears to be incredible news for the company on July 22nd (HUGE IMPORTANT DETAIL BELOW) which rallied the company’s valuation to a high of 2.60, 67% above todays value. – Since OPXS last reported news, it appears the company has been overlooked by Wall Street. From what I can tell it is quite possible that we may be the first to notice that the company is extremely undervalued in our opinion. – OPXS has an RSI on the daily chart of just 28, suggesting immense upside opportunity. – OPXS is trading below its 20 and 50 DMA’s by 27%, an area it may attempt to test in the near-term. . opxs stock chart . News: . “Optex Systems Wins Award for 5-Year Contract With Defense Logistics Agency for $5.99 Million” “RICHARDSON, TX–(Marketwired – July 22, 2016) – Optex Systems, Inc., a wholly owned subsidiary of Optex Systems Holdings, Inc. (OPXS), a leading manufacturer of precision optical sighting systems for domestic and worldwide military and commercial applications, today announced it has won a 5-year Indefinite Delivery, Indefinite Quantity (IDIQ) contract worth $5.99 million to supply its laser protected periscopes to the Defense Logistics Agency. . Optex provides a variety of glass and plastic periscopes with and without laser protection used on various vehicle platforms. The Company’s current footprint in the periscopes & vision block market is an estimated 75% market share in the U.S. ($8-$10 M) and 20-30% worldwide ($40-$50 M). . “One of our priorities has been to increase our margins by securing more commercial contracts while maintaining our established footprint in the armored vehicle platforms,” said Danny Schoening, Optex’s CEO. “Winning the bid on this multi-year agreement demonstrates our capability to execute on this strategy. Given our strong IP, our excellent proven military products and a pipeline of new commercial products, we anticipate many more exciting contracts in the coming months.”” . . About OPXS . “[OPXS] products are installed on various types of U.S. military land vehicles, such as the Abrams and Bradley fighting vehicles, Light Armored and Armored Security Vehicles, and have been selected for installation on the Stryker family of vehicles. . Optex also manufactures and delivers numerous periscope configurations, rifle and surveillance sights and night vision optical assemblies.” , . I Want You To Notice Something Incredible Per the details of the company’s press release, representing a “contract worth $5.99 million” is 2.23x greater than the current market capitalization of the entire company (as measured by Yahoo Finance on 08/03/16. . Could this mean that OPXS is 2.23x undervalued? I can’t answer that question, that is something for you to decide.
When it comes to U.S. defense companies, majors like $45 billion General Dynamics typically spring to mind, but there are many actors on the stage. For instance, the U.S. periscopes and vision block market is valued between $8 million and $10 million and little-known Optex Systems Holdings, Inc. (OPXS) controls about 75 percent of that market. Worldwide, Optex has grown its market share to up to 30% of the $40-$50 million market and looking to add more. http://finance.yahoo.com/news/little-known-optex-systems-dominant-123000951.html
