Force Protection in Reverse

For Force Protection (FRPT Quote), the road to riches seems filled with speed bumps.

A new government contract has halted a rally in the company's shares. Late last week, with its stock already fueled by hope, Force Protection emerged as one of three suppliers to win fresh orders under the multibillion-dollar Mine-Resistant Ambush-Protected vehicle program. Instead of re-establishing its dominance in the MRAP market, however, Force Protection saw rival Navistar (NAVZ Quote) win the biggest share of the contract.

Force Protection fielded a $377 million order for 800 MRAP vehicles. But Navistar got a $509 million contract calling for 1,000 trucks. Meanwhile, British-based BAE remained in the game with a $323 million order for 600 vehicles. ...