Who is it? Israel-based MTI Wireless Edge makes antennae which are used for both military and commercial purposes.
While its commercial antennae are used for more basic services like wi-fi and broadband, its military products are used for tactical and specialised communications in the air, on the ground and at sea.
What’s the latest? This week has been a busy one for the firm. On Wednesday it rose after announcing that it had won a £770,000 contract to provide antennae to a military client over the next 25 months.
On Tuesday it announced that year-on-year revenues increased 13 per cent over the first half of the year to around £9.9million, while profits nearly tripled to £770,000.
The growth has been driven by its expansion into China and the strong performance of its broadband access division.
The firm also said it has a large pipeline of future opportunities, providing potential long-term growth.
Who backs it? The firm is more than 50 per cent-owned by its Tel Aviv-listed parent, MTI Computers & Software Services, which has been a major Israeli defence contractor since the 1980s.
The chief executive, Dov Feiner, also owns a 5.3 per cent stake. Before joining the company Feiner spent 12 years in the research and development division of the Israeli Defence Force.
Why should you invest? The firm has been growing relatively strongly for several years now, and is up 64.3 per cent so far this year alone.
With the company currently trading on a 15x price-to-earnings ratio, well below the 32.7x average for its peer group, its promise of more revenue opportunities in the future could make it a good value grab.
…And why you shouldn’t: Defence and military involvement is a shaky, controversial subject that many investors will want to distance themselves from.
Some investors may also be uncomfortable with the firm’s large overseas focus, with very little of its operations actually taking place in the UK.
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