Someone here doesn’t understand the intent and underlining significance of a $200mil IDIQ spread over 5 years.
IDIQ’s are simply ‘not to exceed’ pricing agreements that protect the Government from cost escalation of a commodity (or service) they expect to purchase (or contract for) ‘at some level’ in the future.
Given budgetary constraints, IDIQ’s are rarely exercised to the full extent of their negotiated ceiling, meaning this latest Sypris IDIQ agreement may be worth $200mil . . . or just some fraction of that.
It would be good if this ‘shill’ would at least review and report the track record of past Sypris Electronics IDIQ’s and confirm their positive impact on shareholder equity before his next post.
In April 2007 Sypris Electronics was awarded a $400mil IDIQ for their KIV-19M Link Encryptor.
- On Apr 2, 2007 stock was trading at $6.75. - On Apr 14, 2008 stock was trading at $3.80
In November 2007 Sypris Electronics was awarded a $125mil IDIQ for their KOV-21 cryptocards.
- On Nov 13, 2007 stock was trading at $6.70. - On Nov 13, 2008 stock was trading at $0.46
(thought bubble): If this particular C/M business was a going enterprise, Sypris wouldn’t have sold T&M to raise cash to reduce debt; all of which was necessary to enable them to restructure loans with their creditors given the failing stock price and Sypris’ bleak performance over the last 18 months. That’s good leadership? That’s good governance? Yep, uh huh!
Good post by Mister. Sypris has tried to use the announcements for IDIQ contracts over the years, but has never translated those deals into profitable growth or any sustainable revenues. The company is mismanaged, and people are taking advantage of the stock jumps to run a quick buck. This company has been dying for 5 years, and the sale of test and measurement just shows tha tthe Gills are only thinking short term recovery for bad decisions in the last 10 years. Don't lose your money on this dog.