Originally published in 2019
VISL Vislink Opens 297% Higher On Breaking News
Vislink Technologies ( NASDAQ:VISL ) is a global developer and distributor of advanced communication solutions. Its high-definition communication links support event footage in challenging military and other live environments.
In it’s breaking news headline, Vislink announced that it has been awarded a $2.8 million contract from the U.S. Army. The company will supply the Army with handheld intelligence, surveillance, and reconnaissance (ISR) receiver devices in support of military operations. The receivers display real-time video transmitted by aerial assets or on-the-ground surveillance platforms.
John Payne, President & COO of Vislink commented “We are honored that Vislink continues to be a trusted partner to our armed forces, and this latest contract underscores our ability to meet their most stringent requirements.”
It thus far has been a summer of positive news for Vislink. Last month it received orders totaling $650,000 from California and Minnesota law enforcement units for its high-definition airborne equipment.
In 2018 Vislink recorded revenues of $37.9 million. The new contract from the U.S. Army is a significant win for the company’s business.
Technical Analysis of VISL
Over the years Vislink has conducted a series of reverse splits. The most recent reverse split was on May 13th and was 1:10. The float, as a result of the reverse splits, is approximately 2 million shares. The stock also has a history of making large percentage gains, on June 3rd and June 17th both exceeding 100% gains.
VISL was buzzing higher in the pre-market and opened the day at $6.55. The prior day close was $1.65 so right off the bat VISL was nearly 300% higher.
Volume in the first 5 minutes of trading was off the charts at 5.3 million shares. This was nearly 10 times the volume that VISL typically saw during an entire day based on the 90-day average.
The big gap up to start the morning sent VISL soaring past its 50-day moving average. The stock had lingered well below this MA since closing just above the line on June 3rd. The move gave VISL some bullish momentum on the daily chart.
Looking at the intra-day 5-minute chart we see that VISL had a brief pullback after the initial burst. It then charged higher touching the $8.00 mark which ended up being the intra-day high. At the peak the gain on the day was 385%! Volume subsided relative to the open, but remained well above normal.
As the trading day came to an end, VISL trended lower to close below its opening at $4.05. Nevertheless, this represented a remarkable 145% gain sparked by the new business win for Vislink. Volume on the day was a whopping 36.3 million shares.
The Secondary Offering
The downward trend to close out the day continued the following day when VISL announced a secondary offering. It will include both common stock and warrants at a price of $2.00 per share. The warrants will have a $5.00 exercise price. Vislink’s $12 million offering is expected to close on July 15th.
This news created a whipsaw effect as the stock plummeted back down to earth. VISL dropped 56% to $1.80, just above where it closed two days prior before the wild up and down 2-day ride began. It was a high-volume adventure that saw VISL go from $1.65, peak at $8.00, then crash back to $1.80 over a 48-hour period.