Insights

Why the Etherstack (ASX:ESK) share price will be on watch today

The Etherstack PLC (ASX: ESK) share price could be on the move this morning following an announced contract award. Here are the details.
The post Why the Etherstack (ASX:ESK) share price will be on watch today appeared first on The Motley Fool Australia. –

ASX share price on watch represented by man peering closely at computer screen

Etherstack PLC (ASX: ESK) shares will be on watch this morning following the company’s announcement regarding a new Australian Defence contract award. At market close yesterday, the Etherstack share price finished the day 0.8% higher at 62 cents.

It will be interesting to watch how the company’s shares perform today as investors digest this morning’s update.

What did Etherstack announce?

The Etherstack share price could be on the move today following the company’s latest positive update.

In yesterday’s late market announcement, Etherstack advised it has entered into a subcontract with Australian defence contractor, Electro Optic Systems Holdings Ltd (ASX: EOS).

The agreement will see Etherstack deliver services to an undisclosed project with the Australian Department of Defence.

The contract’s value is estimated to be around $500,000, and the company expects it to be material in FY21.

Etherstack noted that this deal is now the second contract with the Australian Department of Defence. Previously the company signed a $4.1 million contract to supply its technology and associated delivery services to the Australian Government.

What did the CEO say?

Etherstack CEO David Deacon highlighted the company’s attractive opportunity in the defence and government markets. He said:

We are pleased that the Australian Department of Defence are committing to Australian Industry Content via meaningful awards. Etherstack has had significant international defence wins over the past two decades and it is great to be winning and delivering projects in our home market

About the Etherstack share price

The Etherstack share price has risen more than 220% over the past 12 months. The company’s shares hit a low of 12 cents in June last year, before sharply increasing later that month. Notably, its shares hit a record high of $3.70 after the company announced a global team agreement with major electronics house, Samsung.

Based on the current share price, Etherstack commands a market capitalisation of around $80 million.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Aaron Teboneras owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Etherstack (ASX:ESK) share price will be on watch today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!