I’ve written quite a bit about Techprecision (TPCS.OB) over the past few months (see posts here and here). The company has announced a number of large sales orders in the recent months, and remains poised to capture strong tailwinds across a broad range of industries.

Recent Sales Announcements

• $1.2 Million Purchase Order from New Solar Customer
• $1.19 Million Defense Contract Order
• $900,000 Order from CleanTech Customer
• Continues Accelerated Booking Trend with $1.25 Million in New Orders

For some perspective, the company had revenues of $28m last year – within the last month, they have announced $4.5m in new orders.

Even better, the orders are broadly diversified across a range of industries including Solar, Defense, Medical, and Industrials.

One of the biggest risks with TPCS has been a major reliance on solar (namely their largest customer, GT Solar), so this diversification is a welcome sign.

The $1.2m solar order is also exciting, as it’s the first order out of the new Chinese subsidiary. According to the press release,

“As this customer ramps, the projected volume in two to three years has the potential to exceed the revenue of TechPrecision’s largest current customer.”

A year ago, GT Solar accounted for approx. 30%, or $7m of the company’s backlog, a glimpse at how much this new customer could be worth as it ramps up.

New Investor Presentation

Techprecision also offers a new investor presentation on its website, updated as of March 2011:

[scribd id=50906001 key=key-1fto0cii7h00mq6loxlq mode=slideshow]

Stock Volatility

The stock has been very volatile over the past week, which could have something to do with the earthquake in Japan and subsequent nuclear scare.

While nuclear is a targeted segment for TPCS, less than 1% of 2011 YTD sales occur in this segment (6.28% in 2010).

The stock price has also been hampered as the two insiders (Youtt and Levy) continue to sell shares. While I’d much prefer insider buying, both directors have been selling all year, regardless of the market price.

This short-term volatility does not affect the long-term prospects for the business.

Conclusion

Techprecision possesses a solid advantage with its history of advanced manufacturing to benefit from some heavy tailwinds in its major industry targets.

I remain long (despite the volatility).

Disclosure

Long TPCS

Techprecision’s (TPCS.OB) stock has been on a tear over the past several months on the news of increased backlog and a new Chinese subsidiary. The new investor presentation outlines the incredible growth opportunities the company has in nuclear, alternative energy, and high-tech medical device manufacturing.

The press release announces the purchase and expansion of the company’s manufacturing facility. From the press release:

“On December 30, 2010, Ranor received $6.2 million in tax exempt bond financing through the Massachusetts Development Finance Authority to purchase the property and complete an 18,000 sq. ft. facility expansion in calendar year 2011.  Additionally, the bond funding will also be used to finance one of the largest CNC (Computer Numeric Control) horizontal gantry mills in North America, which Ranor requires for production of new orders and to more aggressively participate in its Nuclear, Defense and Medical businesses.”

The terms of the bond offering seem very attractive for Techprecision with an average interest rate fixed at 4% for the next 7-10 years.

The original lease agreement was under a related entity controlled by one of the company’s directors, Alex Levy, at a higher interest rate (6.85%).

As an outside investor, related entity transactions make me nervous so this new deal should much simplify the reporting and capital structure for Techprecision.

According to the company’s CEO, the new gantry mill will allow Techprecision to process projects 35% faster than existing toolsets. It will also save approximately $200k per year in cash flow, a significant contribution based on the company’s current run rate.

Full details of the agreement are due in the company’s next earnings release.

Since the company’s main competitive advantage is its high-tech manufacturing capabilities, this looks like another positive development for TPCS.

Disclosure

Long TPCS

Techprecision Corp (TPCS.OB) recently presented at the LD Microcap Conference on December 9 and uploaded the newest investor presentation to their website.

I have written about TPCS several times before and believe this new presentation does a great job of showing the company’s incredible market potential.

Check out the new investor presentation here:

[scribd id=45362907 key=key-24afg2babd2xl30shda mode=list]

*Hat tip to IanCassel.com for attending the conference and pointing out the new presentation. Read his take on TPCS here.

Disclosure

Long TPCS.OB