Defense Solutions Holding, Inc. (OTCBB: DFSH) Secures Foodstuff Supply Contract

Defense Solutions Holding, Inc. (OTCBB: DFSH), originally a military production oriented company, has pushed forward with expanding their commercial influence in Iraq by securing a $60 million contract for foodstuff. The contract proposed under competition basis by the Iraq government was secured through the company’s subsidiary Defense Solutions Inc. and has been recently closed by issuance of a performance bond to the Ministry of Trade.[BANNER]

Defense will be making the first foodstuff shipment over the next 2 months with a total of 4 shipments negotiated to be made in the upcoming six monhs. The press release didn’t provide any further information on the size of shipments nor the expected profit margins of this deal, thus leaving quite some room for speculations.

The stock price shot up, as it should after a money making opportunity went through, adding 40% to remind investors of how profitable volatile stocks might get. Further gains should be expected when the company makes the actual shipments, but anything in between is hardly predictable. With recent heavy corrections in place, the news of an unknown amount of future revenue might not be enough to trigger uptrend recovery.

Of course the company isn’t just getting one contract. This opportunity demonstrated they have established noticeable presence in Iraq, which suggests further commercial expansion in the market should be easier than before.

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