In a major development for Sidus Space (NASDAQ:SIDU), the company just revealed it’s been selected for a subcontract to help develop a U.S. Navy propulsion program. Millions of dollars are potentially at stake here, so SIDU stock traders are definitely in a buying mood today.
Florida-based Sidus Space offers what it calls Space-as-a-Service services. These include space-focused hardware manufacturing, design engineering, satellite manufacturing and more.
The company has previously worked with the American military. As CEO Carol Craig states, Sidus Space has manufactured a U.S. Navy trainer system — and now, the company has another opportunity to assist the Navy.
Here’s the lowdown: Craig Technologies is leading the design of the U.S. Naval Nuclear Propulsion Program’s Propulsion Plant Team Trainer Maneuvering Area Panels for Bechtel Plant Machinery. The total value of this project exceeds $2 million.
So, whom did Craig Technologies select to “manufacture, assemble, test and deliver” the Maneuvering Panel trainers? You guessed it: Sidus Space.
What’s Happening with SIDU Stock?
In response to this development, financial traders propelled SIDU stock up 20% this morning. As of 11:00 a.m. Eastern, Sidus Space shares were still above $1.30.
Sidus Space is a tiny company with a market capitalization of around $23.5 million. So, it’s huge news for this company to be selected for another government subcontract, especially one with a total project value in the millions of dollars.
This doesn’t mean Sidus Space will actually net $2 million. Nevertheless, the revenue-generation potential is considerable. Plus, the subcontract solidifies Sidus Space’s status as a trusted equipment designer and manufacturer for the Navy.
It’s perfectly understandable, then, that Craig is “excited to be supporting Bechtel and their Navy customer again.” Clearly, SIDU stock investors are excited, as well.
Sidus Space shares lots a great deal of value last year. Could today’s big news catalyze a comeback in 2023? Only time will tell, but short-sellers should be on notice, as Sidus Space might have rocket fuel now.
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On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
