Monday, August 27, 2007

CAGC and DFNS update

Hello StockDoubling members,

Sorry I haven't updated I was out of town for a while with the funeral etc..

I did end up listening to the conference call on CAGC's 2nd quarter earnings. It is very interesting and if any of you have an interest in the stock it is something you would want to listen to. (It is around 45-50 minutes the first part and the Q&A are the most interesting. You could skip thru the financial readings etc..)

The stock fell like a rock after earnings and fell some more after the call. I did buy some at $2.40 a share (500 shares) and will hold for more longer term. (I bought for my IRA) I think it could be a double in price over the next 12-18 months for sure at these levels. Currently trading a little over 1x P/S for this year. Even with all the issues they should earn .20-.30 I would think for the year. Which would be in the less than 10x PE ratio.
It could go down further if a ticked off investor decides to dump it. But based on a longer term horizon I think they are in good shape going forward. Their may be some bumps in the road but I think its a solid play for those willing to hold a year+.

As far as DFNS, not much is new since last posting. Still in the high .50's or low .60's. The next 2 weeks or so hopefully we get a news release about more orders which would effect this year's earnings. Any news release about new orders will bump up the stock price a little bit at least.

We are in a good position where we are UP in the stock now just waiting for a bigger payoff. It's better then being down a little bit and having to wait for a turnaround. So we have some breathing room even if the stock was to go down a little bit.

later this week I will give my estimates for Q3 for DFNS.

Have a great trading day.
Steve Hoven

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