Ocean Power Technologies (OPTT) Continues Surge Off Bottom, Gets $2.4 Navy Contract

On Aug 25th I mentioned that OPTT was offering a mighty compelling spot to add a long term position around 4 based on previous support and the progression of its PowerBuoy system.. not to mention this is one of the few green stocks that hasn’t had a run this year.  The stock is up 20% since then and I don’t think it’s done yet. 

This morning, the company is announcing a new $2.4 million contract from the US Navy for its PowerBuoy wave energy system.  The Navy will use it in a program aimed to improve anti-terrorism capabilities at sea.  The initial contract is for one year of testing, but may be extended to a four year $15 million contract in the future.  Considering this company does about $3 million in total revenue each year, this contract is a big chunk and a four year contract would send the stock soaring. 

Said CEO Mark Draper, “We are delighted to support the US Navy in its initiatives for improved homeland security and force protection. OPT’s PowerBuoy wave energy conversion system is an important enabling technology for providing power to remote at-sea sensors and communications technologies provided by our partners. In this first contract under the LEAP program, which complements our existing projects with the Navy, we expect to build on our prior experience with the autonomous PowerBuoy by further developing our advanced power take-off systems.”

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