Monday, April 6, 2009
Here is the link to view the 10k
sales for Q4 were very good. They did $18+ million for the year which isn't much less then they did all last year.
They announced a new night vision product partnership which seems interesting. They of course did the buy out of company they co-owned at the end of the year and bought back 1 million shares of stock.
So now there is about 28 million shares outstanding. Of which the CEO owns about 19 million shares. He is 62 and maybe will want to retire in the future. Maybe a buyout possible in the next couple of years?
They still have a good amount of cash and a nice backlog of orders.
The problems are a couple fold.....
1. They are earning money but not much about .02 eps for the year (not including one time payments) Well at 10x PE that is .20 stock which is about where we are now. Even if they double it for 2009 not saying they will but if they did that is still a .40 stock which isn't bad return but that is if all things go right.
2. They have a $2.6 million lawsuit against them. Now they may win the lawsuit so they won't have to pay out the money. (If they lost it that is a MASSIVE hit to there cash) But even if they don't lose they will be paying some legal fees for fighting the lawsuit which is going to eat into profits that are already small.
The float is small (a few million shares) So if the stock rallied for any reason over.30 I would consider selling. I sold my stock that I bought a month ago at .18 and sold it at .21 last week for a 16% profit. The only stock I currently own of DFNS is for the stock doubling project.
I think at this point DFNS is more of a trading stock then a buy and hold stock. If DFNS came back to the mid teens or low teens I would consider purchasing. For a rally to low .20's. If DFNS gets above .30+ I will consider selling DFNS for the stock doubling project and moving on with a new stock.
Have a great day
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Friday, March 13, 2009
1. Buying back some of there stock great news.
2. Came out with earnings which were ok.
3. Came out with book value and cash which is amazing!!
4. Came out with a dividend announcement which is like getting 10%+ return on your money in a couple of weeks! Very nice return.
I bought a couple of weeks ago at $4.30’s. It came down but its still a great buy under $5 if you are willing to hold it for a while.
I just bought DFNS this morning at .18 (5000 shares) they will be coming out with earnings at the end of the month more than likely not sure how good they will be but looking forward to what they say for the future.
Tuesday, January 20, 2009
I sold all that stock in the .20-.25 range over the last couple weeks. It was too good of profits to turn down. Some of it was 30% return in a month or two. I still like DFNS and will hold the orginal position. I don't think it will get to .50 any time soon but I would LOVE to see it back in the teens again so I could load up on it. Currently .22-.26 per share.
They came out with some great news over the last month. From a buyback and now they have bought out a minority interest in a company they had majority interest in. And they seemed to pay a fair amount for it. They also bought back 1 million shares as part of that deal which a 3% outstanding shares. (About 10% of the float if you assume the CEO won't sell his shares)
I may not be able to get back in the teens but trading DFNS has been pretty good for me. The orginal buy of course hasn't. When I get out of this position I don't know.
With Israel at war with Hamas right now (cease fire) how that effected DFNS I don't know. You would think sales would be strong of course the issue is did they sell there products at a profit. They seem to be using the $$$ they got from the gov't in a good way. I think if they can continue to make money even if its a couple cents per year I think these prices could double over the next couple of years. Downside is limited but do you want to wait it out that is the deal of course.
IF DFNS comes down to the teens I will buy more. If it goes to the .40's I would probably consider selling my StockDoubling pick stock.
On to other stocks I have talked about.
ITRA got bought out at $4 so that was a nice return for those of your who purchased in the $3's. I made a couple % on the stock. I didn't hold until the end though.
TATTF is another ISRAEL stock that I really like. They have a good amount of cash and still make some good money. They also own a great deal of LIMC and the company is buying back stock. I think eventually it will probably go private but that is just opionon.
I own the stock from a higher price. I will buy more for a trade if it gets back into the mid $4's. Right now its around $5.
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HAVE A GREAT WEEK.
Friday, December 5, 2008
DFNS came out with their Q3 earnings in Mid Nov. The sales #'s were good though the earnings not as good as I would like to see. Though still profitable overall.
The company has about $8 million in cash and trading securities/bank deposit. Which is about .27 per share. The company is currently trading at .16-.19 per share. The book value is around .44
The company also announced a buyback of the stock up to $450,000. It doesn't mean they will buy back any stock but at least they announced it. IF they did buy back $450,000 worth of shares at an average price of .25 that would be 1.8 million shares they take out of the public. Which is about 6% of the total outstanding shares. However there is only about 10 million shares that aren't owned by insiders so that would really be taking out close to 18% of the public float.
Hopefully they start the buyback soon at these levels.
With the economy and the stock market the way they are things could go down more. However for a person willing to hold I think buying on at these prices are a steal at some point down the road. Its like going to the bank and depositing $1 and the bank giving you $1.40 or so into your account. You can't cash it out yet but its sitting there. Same thing with DFNS they have a lot of cash on hand and a profitable business and you can buy the shares for LESS then the amount of money they have in the bank.
We may have tax loss selling going into the end of the year as tends to happen with DFNS and DFNS tends to have a good Jan. You can look at the chart and see the pattern over the last few years.
NO I don't think DFNS will get to .50 anytime soon. But for 2009 I think we will go up a bunch from these current prices.
On to TATTF another stock I own.
They are buying back stock as well very slowly though. TATTF is down in the low/mid $4's they came out with earnings in NOV. which were less than I had hoped for sure however they have a book value over $10 per share and a good amount of cash. They have already earned .50+ EPS for the first 9 months so they are good deal as well.
With the markets both of these stocks I don't expect them to TAKE OFF. However if you are a long term holder these companies both have PROFITABLE business, lots of cash, are selling at a discount. So we will see they go up in price in the future I feel. When I don't know.
On a final note.
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Thursday, October 30, 2008
DFNS came out with a buyback! YES YES YES! Wish it was a little bigger but hey I will take it.
$450k buyback if they got all the shares at .30 that is 1.5 million shares bought back.
I don't think they will buy them all back. But I think the bottom is now in. Even if the company comes out with a bad quarter with the buyback in place that is potential 1.5-2 million shares being bought back at lower prices.
Glad I was able to pick some up at .18!
Hopefully that is a good sign for Q3 #'s as well. Q3 earnings should be out by Nov. 14th!
Wednesday, October 22, 2008
A few updates.....
1. I bought some additional TATTF on October 10th for a swing trade. (Meaning I didn't want to hold it long just looking for quick gain.) I bought at $4.90 on a Friday. And Sold it on Monday October 13th for $6! A 22% profit in about 3 hours of trading. (I held it over the weekend. But bought it just before the close on Friday and sold it Monday morning) If you were on my Beforeitmoves.com yahoo list you could have made that as well. One member did better then me he made 29% on that trade.
I still hold some TATTF at a higher price and still feel it is undervalued. However with current market conditions their is always risk.
2. I also bought additional shares of DFNS (which is our stockdoubling project pick currently) These shares that I bought are NOT for the project but strictly for my own account. I bought the additional shares on October 10 and 13th for .18 per share. My goal with these shares is to sell them at a 30-60% profit once the Q3 earnings come out which will be by Nov. 15th more than likely. So these shares aren't for long term holding but for a month or so. Hopefully Q3 will be an earning surprise and the stock will move higher. I still hold the shares for the stockdoubling project in DFNS 8000 shares and am not sure when I will get out of those yet.
3. Another interesting stock I thought I would let you know about is ITRA. It recently announced it was being bought out for $4 per share. However as of yesterday you could still buy the stock for about $3.70 per share. The $4 share price will close in Dec/Jan. But if you could buy at $3.70 and get the buyout at $4. That is a .30 per share gain. Which is 8% return in about 3 months or over 30% annualized return. Not a bad return at all better than putting your money in CD's at 3%. Just a thought. Of course the shareholders could turn down the buyout offer (Not likely) but the company has a decent business it would recover some if that did happen. I DO NOT OWN THAT STOCK. AND DON'T RECOMMEND IT. IF YOU DO BUY IT MAKE SURE YOU CAN STAY IN IT FOR THE ENTIRE PROCESS 2-3 MONTHS!
4. I have been doing a lot of research for the StockDoubling Project #2 pick. Which will ONLY be sent to those MEMBERS of BeforeItMoves.com I have narrowed the stocks down from 600+ stocks I orginally looked at to 10 currently. I will continue to research and knock out stocks in the coming days. However I may want to jump on this one soon in case it is ready to really move higher.
So if you aren't a member of BeforeitMoves.com get the 5 day trial today and get setup before we start we this pick.
I wish you ever success in trading.
New email address steve @ stockdoubling.com (take away the spaces)
Wednesday, October 15, 2008
BeforeItMoves is Back!
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19 videos teaching you how to find stocks that are ready to move.
One client made 30% within 3 trading hours with our information! Which paid for the year in 1 trade.
I show you how you can open an account for as little as $100 and start trading!
And the big news is our StockDoubling Project # 2 pick is just around the corner.I will be releasing this pick to beforeitmoves members ONLY between October 24th-31st.
My first pick for the StockDoubling Project # 1. Doubled in price in 4 months!
I will be limiting the membership and not sure how long this offer will be available. So if you are interested their is still time to get your account open prior to the StockDoubling Project # 2 pick!
Have a great trading day
See you inside