Arotech Corporation Shares Fall As Company Reports 4th Quarter Loss
Warrior Trading | Mar 16, 2017 09:49AM ET
Arotech Corporation (NASDAQ:ARTX)
Arotech Corporation (ARTX), a company that provides defense and security products worldwide yesterday reported their fourth quarter and full year 2016 financial results. Arotech reported fourth quarter loss of $2 million. Arotech reported adjusted fourth quarter earnings of $0.01 per share. Arotech reported fourth quarter revenues of $21.5 million.
h3 Arotech Corporation CEO’s Comments/h3h3 ARTX Technical Analysis/h3“Arotech concluded a transformative 2016 with further cost saving measures at both the corporate and division level,” commented acting CEO Dean Krutty. “Our Board of Directors helped drive the reduction in our cost structure with the recently negotiated separation agreement of our former CEO, which followed our previously announced decision to discontinue our Flow Battery business. We will continue to pursue streamlining our operations and our corporate cost structure in line with our commitment to bring better returns to shareholders.”
“At the same time, it should be noted that we have accelerated our investment in the fourth quarter into one of our most promising business areas, the hybrid power segment of our UEC subsidiary in South Carolina. The promise of this equipment as a solution for Department of Defense initiatives to reduce fuel dependence for forward deployed soldiers and marines motivates us to remain the industry leader in hybrid power technologies. We believe that this investment and others, will lead to substantially improved results for this unit beginning in 2018.” Globe Newswire
ARTX opened trading yesterday at $4.00 which was up from the previous day’s trading close of $3.95. Shares closed trading yesterday at $4.10 and spiked down after market to $3.50, equivalent to a 14% decrease from the closing price. Taking a look at the daily chart we can see that the last time ARTX traded below these levels we have to go all the way back to January 3rd, when it traded at $3.50.
Taking a closer look at the daily chart we can see that before the spike down ARTX had already been in an overall downward trend dating back to January 20th when it traded at $5.00. ARTX has a float of 19.59 million shares and traded 1.64 times the normal daily trading volume on Wednesday.
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For trading purposes, I would like to see ARTX open trading on Thursday below $3.70 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.08 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
h3 Company Profile/h3Arotech Corporation provides defense and security products worldwide. The company operates in two divisions, Training and Simulation, and Power Systems. The Training and Simulation division develops, manufactures, and markets multimedia and interactive digital solutions for engineering, use-of-force training, and operator training of military, law enforcement, security, emergency services, and other personnel.
This division offers simulators, systems engineering support, and software products for training vehicle operators to the United States military, government, municipalities, and private industry; weapon simulations used to train military pilots, weapon employment information used in air launched weapons, and part-task simulators to train aircrew; and specialized use-of-force training simulators and systems for police, security personnel, and the military under the MILO Range trade name.
The Power Systems division provides electronics engineering and design, system integration, rapid prototyping, and vertically production services for military, aerospace, and industrial customers, including hybrid power generation systems, smart power subsystems for military vehicles and dismounted applications, and aircraft and missile systems support for weapons and communications technologies.
This division also develops and sells rechargeable and primary batteries, and smart chargers to the military and medical markets, and to private defense industry under the Epsilor name. In addition, it develops, manufactures, and markets primary batteries, rechargeable batteries, and battery chargers for the military; and produces water-activated lifejacket lights for commercial aviation and marine applications under the Electric Fuel name.
The company was formerly known as Electric Fuel Corporation and changed its name to Arotech Corporation in September 2003. Arotech Corporation was founded in 1990 and is based in Ann Arbor, Michigan.
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