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Military stocks are always a good bet, whether small cap or large Military stocks generally get rewarded generously by the deep American pockets. Though throughout the past few years this especially rings true. Whether you need to supply a tent in Afghanistan or cold combat weather gear for the arctic climate, military equipment is always needed. Today I would like to hopefully get you looking at my personally favourite stock on the TSX. That stock is MRS.v and throughout this post I'll give you all of my research into the company and my opinion. Though you have to understand, nothing I say is financial advice. Everything here is supposed to be for due diligence purposes. With this, let's start with the Companies History.
This company's history starts in 2009 when it was incorporated. Mission Ready specialised in cleaning and decontamination of personal protective equipment and the manufacture and distribution of next generation and defence tactical solutions. With the acquisition of Protect the Force Inc. (PTF) in 2012, Mission Ready extended its operations to include relationship management, product development, acquisition and contracting expertise and sales and marketing support to manufacturers selling to the US Federal Government. Mission Ready's government contracting division, Unifire, was founded in 1987 and provides a comprehensive array of contracting solutions to the US Federal Government. Unifire's mission is to produce and provide military, fire, rescue, and law enforcement with the products and knowledge required to fulfil their unique duties. Since the birth of this company they have been seeking one singular goal, Mission Ready is committed to becoming a global leader in personal protective technologies. Now what is a company without a crack team behind it?
Leadership(Buck, Dom and others)
That's where we come to the crack Leadership team. Firstly we must talk about our glorious leader Buck Marshall. If you've ever read Plato's republic this man's soul is easily made of gold. Whether being philosophic or godlike, Buck has you covered. Buck brings over 16 years of service within the commercial banking industry. During the past 12 years he has worked closely in tandem with the U.S. Small Business Administration (SBA). Through this experience he has developed an intimate knowledge of SBA programs, this easily equipping him with the knowledge to efficiently navigate the credit standards and requirements for working with the US Government, and past this to leverage the specific programs available to enable small businesses to gain access to capital when conventional access is limited. Most recently, as Market President of Northwest Bank, Buck worked alongside Northwest's Board of Directors and Division Managers to develop policies and procedures that would ensure the successful realisation of its long-term growth strategies. To quote a quote Buck once took from spiderman "with great power comes great responsibility” at northwest bank he used that power to gain immeasurable knowledge of the SBA programs. Now with that he took the reins in 2021. Armed with this knowledge he took a ramming start at the wall to break a dollar. Well as you'll find later he once did such in a time long ago. Now we must move onto Dominic Gray. Dominic Gray is a veteran of the industry if I've ever seen one. Dominic is a veteran of publicly listed companies with over 15 years of experience in various management, and IR positions, including multiple TSX Venture and OTC companies. Dominic Gray only last year gave us a solemn vow to develop and implement communication and marketing strategies aimed at enhancing Mission Ready's visibility in various channels to reach the Company's stakeholders. As Dominic himself said in those days sadly long past “Mission Ready meets a critical need to provide military personnel, law enforcement, and first responders with topline equipment to ensure their safety while they work tirelessly to ensure ours, I look forward to sharing their compelling story and bring visibility to the Company's tremendous potential while working with such a diversely skilled and dedicated team.” With his capital market experience Dominic also brings a unique and deep understanding as well as a new perspective on how to expand awareness in the investment community while also understanding the need to communicate the needs of Stakeholders. Next on our list of absolute kings is Terry Nixon himself. Terry is our true MRS veteran. He helped found MRS and served diligently for 11 years as the Director of Corporate Communications until July 2018 when he was appointed to the position of Chief Compliance Officer. He himself also brings an impressive history of C-level executive leadership experience to the Company along with an intimate understanding of capital markets, regulatory compliance, corporate governance, and public-company administration. Nixon's an absolute swiss army knife in the company having long-standing relationships within the investment industry, this including an extensive network of affluent private and institutional equity investors. He has easily been indispensable to the company making it easier for the company by securing capital for Mission Ready Solutions since the inception of the Company.
*The first catalyst for this stock can be found in the companies financials MRS does not have negative shareholders equity. Now what this means is that MRS assets can cover its liabilities. So even if the company shits the bed they'll be able to cover the losses keeping the stock somewhat profitable. The next catalyst is also found in its financials. Within the last 12 months MRS became profitable. While this might not be as big as contract news this profitability generally keeps the stock at a floor of $0.24CAD generally speaking. (https://www.google.com/amp/s/ca.finance.yahoo.com/amphtml/news/strong-financial-prospects-force-driving-175811040.html)
Now we must move on to talk about the contacts they've gotten. For this we'll go in chronological order. The first of these is the BPA for Cold Weather Gear. Though this contract was originally won by unifire in 2019 it was recently renewed in 2021 by the US government. Originally for 2 years it's recently been extended to last until 2024. Now what does this mean for you and me? Well what this means is that unifire delivered the cold weather gear; they delivered it in a good quality and they did it swiftly. This in my opinion shows me that at least at a basic level if not a higher one that the US government trusts Mission Ready Solutions and its wholly owned subsidiary Unifre to deliver it's needs. Hell at the same time of the extension comes our next catalyst. This would be the BPA for Afghan Refugees. This contract is to provide the US Defense Logistics Agency Troop Support Clothing and Textile Supply Chain with the means to provide Afghan refugees with everyday house commodities. These such as blankets, pillows and sheets and by God the deliveries must have gone well so far. (https://www.newswire.ca/news-releases/mission-ready-solutions-announces-blanket-purchase-agreement-bpa-award-for-support-of-afghan-refugees-and-extension-of-cold-weather-bpa-852260411.html)
I speculate on such because the US government barely a month ago awarded Mission Ready Solutions with up to $200M for COTS Shelter Systems. (https://www.google.com/amp/s/www.marketwatch.com/amp/story/mission-ready-solutions-subsidiary-wins-200m-u-s-defense-agency-contract-271638533952)
This contract has a ceiling of $200M USD and if they deliver the COTS systems well enough it can be possibly renewed for another 3 years. This means this catalyst like the BPA for cold weather gear can possibly be with us until 2024. Now with the current catalysts out of the way, what are the investors predicting this rise in volume and general bolstering of the stock might be?
Volume and predictions on why its been bolstered
Well at the moment there's about 3 main theories. To kick this off let's go with the one that's the most out there atm. MRS has a lot of irons in the fire at the moment as we'll discuss later. Well I guess some people in the yahoo discussion might think this is government buying. Not like the actual government more so Dems and Republicans in the house/general politics. With that out of the way we can move onto the least interesting. The community, and at that point man you guys have pulled through. If this is all grassroots buying I just gotta say, I'm shocked in a good way. Like holy shit man you guys have really pulled through on this one. Which brings us to the last theory and hopefully the right one, institutional backing. This theory says a day not to soon we will learn that this massive uptick in buying has been an institutional backer. If this is true then screw contract news this will carry the stock to a dollar.
So looking forwards we first gotta look at what irons Mission Ready Solutions has possibly bid on. So first I'll give you the list, currently the Potential Contracts are: Cold weather warfare gear, Ballistic Combat Shirts, Stockpile Gowns and possibly Biden Masks. So first the cold warfare weather gear. I mean hell we already have a BPA for it active with the company. If we've continued to do good work with the BPA I see no reason why we won't end up with at least a chunk of that contract. (https://sam.gov/opp/e98cefd204494c4d8f366b65cb71c4ce/view) Next up on the docket is the Ballistic Combat Shirts contract. Now what sucks about this one is its contract deadline to submit offers was recently extended a month from January 24th to February 24th. Now in my opinion this means either the US government can't decide which usually doesn't happen or that this could be due to a lack of qualified applicants which would bode extremely well for us. (https://sam.gov/opp/cd1232016d2143358c801fc260f41005/view) Next up is the Stockpile gowns, in 2020 Mission ready solutions won the contract for isolation gowns. If we do again the ceiling has increased from 470M to I believe somewhere around 2Bn, though I could be misreading it. (Generally it's 9$ per gown from what I could find and they was 225.6m are needed) (https://sam.gov/opp/2cd7ceab441341d7937619891e8bd2aa/view) Now lastly is the Biden masks. Though I don't believe we can make them we can absolutely be the midpoint between the manufacturers and the government. Though this contract is a bit far our there with our partners I'm pretty sure we would have a good bet at getting it. Now with the contracts out of the way, what else does the company have going on? Well the first thing I'd like to bring to your attention is the the submission for the VA GSA Schedule if they end up getting this then what that will tell me and other potential/long-term buyers is that we will be given great visibility in the federal marketplace. This visibility will allow us to win GSA and open market bids at an increased rate. Now lastly we must talk about The imminent launch of Mission Ready Solutions full-scale E-Commerce platform. This will easily allow them to offer more than 20,000 products, including both in-house and vendors' products, in one convenient, easy-to-shop location that's readily accessible to retail consumers.
Mission Ready solutions is personally my favorite stock on the market and after reading all of this I hope it's yours as well. As said earlier nothing in this post constitutes financial advice. This post is literally all of my knowledge on the stock written out in one place. Hopefully it helps propel you into doing your own research. And remember whether you need to supply a tent in Afghanistan or cold combat weather gear for the arctic climate, Mission Ready Solutions is integral to that. $MRS.V $MSNVF