On Monday the satellite infrastructure solutions company, Globecomm Systems (NASDAQ:GCOM) was awarded a $9.9 million contract with the U.S. Army’s Communications division. But the hopes during Monday’s trading session got very high, maybe too high, when the potential contract value for Globecomm was estimated to be in the vicinity of $87 million.
Now there is no guarantee that the contract value would get that high, but the ripple hit investors, not so much institutional investors, but individual investors, which pushed the stock up far enough to close at $15.31 up $3.05 on over 1.1 million shares traded.
Of course this contract is going to help the company’s earnings but it just looks as thought the stock may have jump up too far on this news and anticipated revenue flow. Investors should look out for a possible pullback as the true value is actually realized and the hype dissipates.