Monday, September 11, 2006
CPI Aerostructures (CVU) gets some business
The overall story about CVU is the gigantic C5 TOP contract they got back in 2004 for about $215 million worth of work. Time passed and the planes continued to be used in the Middle East without having this work done. One of them crashed on April 3, 2006. Earlier this year, it appeared that time was running out and the CVU stock tanked severely. CVU had ramped up for increased operations only to have the amount of work decrease.
So it's good news to see that they're getting some business, if only $1.1 million for now. Last week they were awarded a $1.14 million contract for E-3A work.
I continue to own the stock although I wish I had bought it at these prices instead of sitting with a 50% unrealized loss.