SMS shares surge as FAA tick looms
Investors betting on Perth-based airline technology company Structural Monitoring Systems have pushed its share price into the stratosphere, with the one-time penny dreadful's stock jumping more than 2000 per cent over the past 12 months.
The surprise rise of the tech play - which is focused on sensors to monitor metal fatigue on Boeing jets - continued yesterday, with its shares jumping 6c to 48c, valuing it at $44 million.
This time last year, the company was worth $1.8 million.
Although there was no news to justify yesterday's run, company secretary Sam Wright said he believed the price rise had come on the back of investors betting on a pending approval from the US Federal Aviation Administration for its product.
The technology is currently being tested on 14 jets owned by US airline Delta.
"We're getting towards the pointy end of things now," Mr Wright said.
"The essential piece of the puzzle was getting it on commercial 737s, which we've done, and we will have enough data in the next couple months for the FAA to provide what they call an Alternative Method of Compliance certificate, (for airworthiness)."
Mr Wright also pointed to New York hedge fund Drake Private Investments buying $400,000 worth of stock at 40c a share on Friday as an impetus for the rise.
