Companies that have been around for a number of years remain strong and solvent because they adapt to the times in which they do business (witness the unhappy examples of established North American car companies, such as General Motors and Chrysler, whose shoulders were pinned to the mat this year and sought government help for their failure to adapt). Firms whose stock in trade is technology are keenly aware of this need to be flexible and progressive. One such company is Southampton, Pennsylvania-based Environmental Tectonics Corp. (OTC:BB: ETCC, Stock Forum).
Celebrating its 40th anniversary this year, ETCC boasts core technologies, which include Training Services to simulate the physiological effects of flight, as well as disaster simulations and even entertainment applications. Its Control Systems technology includes steam and gas sterilization; testing and simulation devices for the automotive industry; hyperbaric and hypobaric chambers. The key here, in this day and age, is that the technology also includes sterilizers, and environmental control devices along with parts and service support.
“The Control Systems Group,” says the company website, “provides an array of products that are designed and manufactured in-house to meet the requirements of the HVAC/engine development, clinical medicine, pharmaceutical and animal care markets.”
In 1971, one of ETCC’s first products was a high-altitude, rapid decompression chamber for the United States Navy. This first chamber's unique design and control system would eventually provide the base technology for the development and evolution of many of the company's other products.
Tectonics had millions of reasons to smile in mid-June, with the announcement of four new contracts for customers, both long-time and newly-won, totaling $3.5 million.
While playing coy with the actual identity of the customers in question, ETCC outlined what the contracts involve. The first project is for a major university for a large industrial, sectional autoclave. The second project is for a large Control System upgrade to a competitor's sterilizer, bringing the customer into compliance with Food and Drug Administration (FDA) requirements. The third is for a portable field sterilization system for a military client and the fourth is for two large industrial 100-per-cent Ethylene Oxide Sterilization Systems.
Perhaps the foursome of contracts all in one day – with the prospect of healthier revenue streams - will help settle the volatility to which the company’s stock has been subjected in just the last few weeks. ETCC’s hit its 52-week gulch of 35 cents on June 1, after getting some lift to the lofty heights of $3.07 in mid-May. On the day of the news from its four discreet customers, ETCC’s stock found itself ahead more than 6% to $1.12, still perhaps tantalizing enough for bargain sleuths to give its tires a kick.
Disclosure: The author, Peter Szafranski, neither owns shares of the company mentioned nor is compensated by the company for writing this report.
Read more articles form AllPennyStocks.com here