Liquidity Services extends DoD scrap auction deal, shares rally

|About: Liquidity Services, Inc. (LQDT)|By:, SA News Editor

Liquidity Services (LQDT +7%) has obtained a 12-month extension of its scrap auction contract with the DoD. The extension means Liquidity will be "the exclusive sales channel for the disposition of scrap property that is approved for public sale" through June 9, 2015. (PR)

Investors and analysts have been nervous about the status of Liquidity's contract renewal talks with the DoD, both for its scrap and surplus asset agreements. Benchmark recently expressed concerns about the deal terms Liquidity would get for a surplus renewal, given a more competitive bidding process.

Shares are recouping some of the huge losses they saw two weeks ago, after Liquidity provided weak FQ1/FY14 guidance to go with mixed FQ4 results.