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AML3D (ASX:AL3), an Australian company which uses an industrial 3D printer to create parts targeting contracts with the U.S. military, has jumped as much as +18% on Tuesday, to 16cps, on the back of such a contract.
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That price move has had the apparent effect of reminding investors that it’s not just oil that is the obvious sector to go for right now.
Similarly-minded junior companies Amaero (ASX:3DA) and Titomic (ASX:TTT) were both green in lunchtime trades despite releasing no news, suggesting parcels of enthusiasm have bled into both stocks on the back of AML3D’s news.
While nowhere near the prestige of Electro Optic (ASX:EOS) or Droneshield (ASX:DRO), all three are more or less trying to angle into U.S. defence exposure.
As for AML3D’s news, the company has inked a $10M contract with the “US Department of War” to Huntington Ingalls Industries (HII), described as the USA’s biggest military shipbuilder by AL3 on Tuesday.
“The step change in the size and value of this HII ARCEMY order is very much reflective of the strong and growing demand signals that underpin AML3D’s continued expansion into the U.S. defence market,” AML3D CEO Sean Ebert said Tuesday.
“Not only do we expect to see a continued growth in U.S. defence orders, we are also looking to continue to expand into other sectors.”
Worth noting: The stock is fairly illiquid. Tuesday’s +18% jump was on the back of less than $200,000 worth of trades changing hands. That may or may not last if the company can get its foot in the door with the US Department of War. (Which I guess we will have to start calling it, in light of recent events).
AL3 last traded at 16cps on Tuesday lunchtime.
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