This morning it is fairly likely that the Environmental Tectonics Corporation (OTCMKTS:ETCC) stock is going to be in focus among many investors owing to the fact that last Friday, the stock had managed to come into considerable focus among investors.
The stock had made a strong move on Friday and had clocked gains of as much as 16% amidst heavy interest. In light of such gains, it may be a good time for investors to get acquainted with the company a bit more intimately and learn about its business operations.
Trading Data
On Friday, ETCC stock moved up 16%% to $0.29 with more than 10K million shares, compared to its average volume of 1.8K shares. The stock moved within a range of $0.2750 – 0.2900 after opening trade at $0.29.
About Environmental Tectonics Corporation
The company performs its work through a range of its subsidiaries and is primarily known for being involved with engineered solutions. It operates in the United States and overseas as well. The two main sectors in which it operates are Communication/Industrial Systems and Aerospace Solutions.
The Aerospace Solutions business is involved in the manufacturing, design and then sale of aircrew training systems. Those are then distributed to government, military, and commercial defense agencies.
ETC Announces Completion Of Sale-Leaseback Transaction Generating $4.7 Million In Net Proceeds
Environmental Tectonics Corporation was actually in the news yesterday after it announced that back on June 15 this year it had decided to sell its property in Southampton, Pennsylvania and then leased it back. The property that was sold and leased back houses the company’s corporate headquarters, the NASTAR Center and its principal production plant. As per the terms of the agreement that was signed by Environmental Tectonics Corporation, the property had a net book value of $2,250,000 and it was sold for a pre-tax net of $4,700,000.
That helped Environmental Tectonics Corporation in making a net gain to the tune of $2,400,000. However, it is necessary to point out in this regard that the training equipment that had been in place at NASTAR Center had not been a part of the transaction. On the other hand, the property has now been leased back by Environmental Tectonics Corporation for a period of 7 years initially. However, it should be noted that there are specific options for renewal for another seven years. The net rent expense for the first year of the lease is going to be $420,000 a year.
Technical Data
ETCC stock is trading above the 20-Day and 50-Day Moving averages of $0.25 and $0.26 respectively. However, the stock is trading below 200-Day moving average of $0.30.
