Ionatron Signs Deal with U.S. Navy; Shares Jump
Ionatron said it was awarded a $500,000 deal from the Navy for the testing of a counter-explosive device, boosting its shares.
The company, which makes applications for high-power lasers used in warfare, said the pact awarded on April 26 will fund initial development of a program for the U.S. Marine Corps to improve naval warfare capabilities.
Additional funds will be used to test and demonstrate the devices.
The contract represents 5% of the company's revenue for the last fiscal year. In 2006, Ionatron recorded $10 million in revenue.
Shares of the Tuscon, Ariz.-based company jumped more than 20% on the Nasdaq.
CNBC's Jim Cramer highlighted the stock on "Mad Money" last Friday and recommended the stock to investors not afraid to take on risk.
Cramer noted that the stock's short interest is at approximately 25% of publicly available shares, or float, which increases the odds of a short squeeze.