ArmorGroup Building Momentum With Latest Contract Win

Apr. 3.07 | About: Armorgroup Intl. (AMGPF)

ArmorGroup International PLC (OTC:AMGPF) has won a $189 million contract to guard the US Embassy in Afghanistan -- the largest single contract the company has won to date:

Under the deal, McLean, Virginia-based subsidiary ArmorGroup North America will provide the embassy in Kabul with Gurkha soldiers, Afghan Guards and bomb-sniffing dogs, as well as providing catering and laundry facilities.

I know that diversifying your business away from Iraq by gaining new business in Afghanistan may not sound great, but it's a dangerous world out there. And that also includes places like Russia and Nigeria, just to name a few.

If ArmorGroup's momentum continues, it may become a major player in a growing industry. But even with its recent stock price gains, ArmorGroup is only roughly a US$100 million company -- bit sized by world standards. So it could well be a takeover candidate.

Disclosure: Author is long AMGPF.PK