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Taking a Moonshot on Mission Ready Services

This is a tiny micro-cap on the TSX Ventures.  I just came across the stock this morning.  They have a $35 million market capitalization at current levels.  Just yesterday they announced a huge contract with a foreign military for their Flex9Armor and No-Contact Tactical Shield Covers.  The contract is for $50 million USD in the first two years, followed by $100 million USD for subsequent years.

I might be wrong, but the agreement looks more legitimate than some you see announced from small venture plays.  This isn’t an memorandum of understanding (MOU) or letter of intent (LOI) from what I can tell.  I have found those sort of agreements are often not carried out in the end.

Nevertheless, I can’t be positive if the contract is legitimate.  But it appears to be.  What due diligence I have been able to do in the last few hours suggests the company has legitimate products.  Earlier this year they announced a contract with the US Navy to develop Electrician’s Impact Safety vests.  That the company has had successful bids with the US defense industry gives me at least some comfort in the current contracts legitimacy.

Buying the stock here means I am adding after what has already been a large run.  It may be exhausting itself and I may have caught a short-term top, hard to say.  My thought adding here is that A. you never know where these things exhaust themselves and B. if the contract gets executed then I am still getting shares for well under the $50 million to $100 million revenue run rate of the deal.

As always, I am taking a small position only, as this quite obviously might not pan out.

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