Force Protection climbs on CEO announcement
In a message posted to Force Protection, Inc.’s (Nasdaq: FRPT) website that was intended to “dispel unfounded rumors,” CEO Gordon Mcgilton said the maker of armored vehicles current cash position is “strong with over $60 million in liquid assets, virtually no debt and a significant capacity to access debt capital as necessary.”
Stanford Group on Wednesday initiated coverage on the Ladson, S.C.-based company with a “sell” rating. The investment bank said the demand for bombproof vehicles could be much smaller than expected.
“We have multiple customers with demand for both our vehicles and our services to support and sustain the vehicles after delivery,” Mcgilton said. “Requirements will rise and fall by theater, month-to-month, but until MRAP vehicles are integrated into all service units in significant numbers, the attacks will persist. We have just begun to make an impact, not completed the task.”
The chief executive said the company is “optimistic” about future sales.
Investors are reacting positively to Mcgilton’s announcement as FRPT shares are soaring 38.78%, or $2.04, at $7.30. Over the last 52 weeks, shares have ranged from $4.52 to $31.16.
