Friday, December 14, 2007

LUNA gets a contract

Luna Innovations(8.81), which I wrote about on September 6th at $3.79,and October 24th at 5.64 keeps moving up. Now I'm talking about it at $8.81. I'll keep talking about it until it gets to triple digits.

Today news came out on the street that LUNA received a $4.5 million contract from the government for field programmable gate arrays (FPGA). (This news actually came out on December 6th, Wall Street only picked up on it today.)

The military uses chips that are made overseas. Are they secure?

The Defense Advanced Research Projects Agency (DARPA) figured out that overseas chips could be a threat, in this 118 page report.

So LUNA, will be ensuring that FPGA's will be trusted. The Pentagon only uses 1% of high performance integrated circuits (IC), when it used to use about 7% of the world's supply. And since the Pentagon is on a budget, they use COTS (commercial-off-the-shelf) components. Fabless IC production makes up about 18% of the industry, while high performance IC's are substantially higher. And nobody wants a "Trojan horse" in a defense department chip.

LUNA will help make sure that it doesn't happen.

LUNA is under followed and under appreciated. It traded as high as $10.45 today, and then pulled back. It's still a good entry point at these levels.

And here's a bit more on the company.

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