Wednesday, May 16, 2007


Interesting day for DFNS yesterday. It hit a new 52 week high of .70 but only closed up a couple cents for the day. A lot of volume possibly from the person holding 3 million shares that is interested in selling.

DFNS also made a mistake on their press release on net income. I have gotten confirmation from the company that the 10Q # or roughly .02EPS is the correct # which is good news.

Depending on if this big investor trys to dump his shares will determine where the stock could go. If he trys to dump them we could go to the .40 range. If he doesn't I think we will stay in the .50-.70 range until the Q2 comes out which would be August 15th.
I would expect some BIG #'s as far as revenues and earnings for that report.

If we can get some additional positive news releases about new orders etc.. We should see some good movement in the stock. I feel quite comfortable now with this company, now that they have shown they can earn a profit from their increased revenues.

We are only a little over a month into this pick so just having patience will be key. So far it hasn't taken longer than 4.5 months in prior StockDoubling picks to get a double. (4.5 months for DFNS would be around Q2 time.) This is a 1 year project per stock at least that is the goal. I think if DFNS can build on this Q1 # though with an even stronger Q2 in both revenue and earnings I don't think we will have to wait a whole year for the double.

I sold my AYSI shares that I held in my IRA yesterday and actually bought more DFNS (for my IRA). AYSI fell hard and may recover but their earnings report wasn't good it may be fine over the next 6-12 months but I felt DFNS had better upside in the shorter term.

I do own some CAGC still though for my IRA. CAGC came out with their 10Q after the bell yesterday and they had a very nice quarter. They earned .10 EPS on $8 million revenue both of which are way up from last year. Their Q2 is their BIG quarter. I would guess they could earn .15-.20 for that quarter.
It is a screaming buy at the $3.10 level you could have bought at open this morning. Downside is less than $1 and upside $2+.

Also TSSW hit a high $1.56 yesterday which is more than a double from the .76 price when I orginally covered the stock. (April 9th as part of the "other stocks" I guess that should have been the stockdoubling pick. Hindsight is 20/20 and I think DFNS will be fine in the long run.) If you bought some TSSW congrats!

Have a good day
Steve Hoven

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