Wednesday, 28 July 2010

Investors Cheer AeroMechanical's Latest Contract For 34 Aircraft

AeroMechanical Services Ltd. (TSX:V-AMA)
Basic Shares: 103.6 million
Fully Diluted: 115.4 million


Early investor reviews were uniformly thumbs up on AeroMechanical's Wednesday announcement about a contract to install its technology on a Scandanavian airline's fleet of 34 Dash 8 aircraft. The deal to outfit the fleet is worth $4.3 million (USD) over the term of the five-year contract.

While marketing activity by the company and press attention to AeroMechanical's (AMA) technologicial breakthroughs have been running at a fast pace this year, there haven't been a lot of bread-and-butter-contract announcements.

However, all that steady and necessary quiet homework AMA has been engaged in this year paid off with a contract to outfit an entire and large fleet of turboprop aircraft. This latest customer, which was not identified, typically launches over 300 daily flights to national and international airports. It's a very busy airline.