By: Tomas Ronolski - AllPennyStocks.com News

Monday, December 7, 2015

In its report on the global economy published earlier in the year, National Bank of Canada (NBC) noted the sharp decline in oil prices has taken it by surprise. The Canadian economy has been negatively impacted by the sharp pullback in prices of oil and other commodities. NBC said in its report that the slide in oil prices is not in-line with the demand/supply fundamentals in the market. According to NBC, the energy sector accounts for 10% of Canada’s economy. So the drop in oil prices and the subsequent drop in investment spending is bad news for the Canadian economy. But NBC is not overly bearish in its assessment of the Canadian economy.

The bank notes that the cheaper Canadian dollar will help exports, although that hasn’t been the case thus far. Also lower oil prices will provide a boost to the U.S., Canada’s most important trading partner. In addition, manufacturers in the energy-intensive space will benefit from lower oil prices as their input costs will be lower. While the outlook for the Canadian economy is mixed as oil prices remain weak, export-oriented manufacturers should benefit from a cheaper currency.

This morning, Cymat Technologies Ltd. (TSX-Venture:CYM) announced the receipt of an initial order from Panhard General Defense, which is a division of Renault Trucks Defense and part of Volvo Group. Panhard has placed an order for 250 SmartMetal(TM) vehicle blast mitigation kits. This is the first serial-production military vehicle order received by Toronto-based Cymat Technologies.

CYM’s SmartMetal panels have been engineered to provide a lightweight solution offering occupant protection from blast energy such as that resulting from the detonation of Improvised Explosive Devices (IEDs). The SmartMetal kits will be installed on the underside of Panhard’s light armoured protected 4X4 wheeled class of vehicles. The approximate value of the order is $400,000. The company expects to deliver the order during the first half of the calendar year 2016.

Michael Liik, Executive Chairman at Cymat, said that the initial order is the gratifying result of a 4 year development process with Panhard, while also validating the company’s military strategy and establishing the military sector as a significant new vertical market the company will focus on. Liik further said that the company’s expectation is that such a significant resource commitment by a major global military player like Panhard is likely to yield further SmartMeal deployment with this group of military vehicle manufacturers in addition to Panhard.

Shareholders are cheering this announcement sending shares of CYM up a very impressive 107% in early afternoon trading on strong volume.

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