Force Protection is in the news today after earning a contract from the Tank Automotive and Armaments Command (TACOM) unit of the U.S. Army. Under the terms of the $22.3 million contract, FRPT will product 29 Buffalo mine-protected vehicles. To date, FRPT has delivered more than 140 of these vehicles to the military in support of campaigns in Iraq and Afghanistan.
Michael Moody, FRPT president, said in an accompanying press release: We are gratified to note the critical role the Buffalo continues to full for our armed forces ... since 2003, this vehicle has been used by route clearance teams to make thousands of miles of road safer for our troops.
Despite this good news, FRPT has dropped 4.6% in today's rocky session. The stock has been facing technical resistance overhead at its 10-week and 20-week moving averages. The shares have also been struggling with their 20-day trendline since mid-October. Finally, a long-term view of FRPT shows that the stock has been wedged between its 10-month and 20-month moving averages for the past few months.