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On July 12 BMR published “Stay Cool With This Commodity – Literally“.

The premise for Hudson Technologies (HDSN, NASDAQ) as a 5-year growth story was that thanks to the goofballs at the United Nations, Hudson would inherit a near oligopoly on R-22, also known as “freon”. Freon is what most air conditioners and refrigeration units use to keep your house cool in these hot summer days, and your perishable items chilly.

As luck would have it, Hudson was awarded a Department of Defense (DOD) contract just 6 days later that could be worth up to $400 million!  Gotta love the DOD!

The huge news was released after the close Monday.  Yesterday, HDSN jumped by more than 30% as it traded a whopping 11.6 million shares to close at $5.05.  It’s now up a cool 43% since Daniel’s introductory article July 12.

Hudson’s 5-year contract, with a 5-year renewal option, is for the management and supply of refrigerants, compressed gases, cylinders and related items to U.S. Military Commands and Installations, Federal civilian agencies and Foreign Militaries. Primary users include the U.S. Army, Navy, Air Force, Marine Corps and Coast Guard.

Kevin Zugibe, Chairman and CEO of Hudson Technologies, commented, “This award was two years in the making and represents a transformative win for Hudson. In January of 2015, we executed a strategic acquisition of a West Coast based supplier of refrigerants and compressed gases to expand our presence in the industrial gas sectors. This acquisition provided us with complementary capabilities to subsequently bid on, and ultimately win, this large DoD contract. While the ultimate amount of revenue will depend on order levels, this award solidifies our presence in the refrigerants and industrial gas sectors and we believe will contribute considerable future revenue and earnings growth.”

We’ll continue, of course, to keep a close watch on Hudson.