Tuesday, December 4, 2007

DFNS and the StockDoubling Project

Hello StockDoubling members,

I haven't had an update in a while. Not much is new with DFNS it is WAY undervalued I believe at these prices the bid is .30 (what you can sell it for) ask is .36 (what you buy it for)

Based on .31 which was its last traded price and 29 million shares outstanding it has a market cap of $9 million. (That is the worth supposedly of the company.)

The company will do $17-18 million for the year in revenue more than likely so its value is 1/2 its sales. It also already has .042 in EPS for the year and may or may not earn more in Q4.

We could have some tax selloff before the end of the year yet on DFNS. But I think after the New year if not before we will see a move higher and people look for value and this has a ton of value.

It had a big 300k+ volume day last week but nothing really happened with it. Not sure what to think. They did also make an announcement about a new order for a product but the order was only for 250k so it isn't that big of deal. The only issue that I can foresee is that sales have just dried up. During their slow times though over the last few years they were still able to do $10 million or so a year in revenue which would still put our Price to Sales ratio at less then 1. So unless this stock simply implodes I just don't see it being down at these levels for too long.

Now on to the StockDoubling project itself......

I started the project back on October 31st 2005. The goal is to get 1 stock to double each year and after 11 years I would have $1 million after starting with just $500. Well we started off with a bang and were doubling stocks in 4 months time. Well obviously this year hasn't been good to us but we are still on track.

Starting with $500 on October 31st 2005
$1000 would be needed by October 31st 2006 (Which we had)
$2000 would be needed by October 31st 2007 (Which we had)
$4000 would be needed by October 31st 2008 (We actually put $4k into DFNS)

Anyway my point is we are still 10-11 months from the October 31st 2008 time frame when we should have $4,000. Currently I have 8000 DFNS shares at .30 so that is $2400. If DFNS came back up to .50 the $4,000 would be there.

So we just have to take a step back and look at the goals for the long term. Again this project is to see if it can get done, and hopefully it can but it wasn't a project to double stocks every 4 months it was to find 1 stock a YEAR.

With the wildness of the markets lately their are always good opportunities to look at. Right now for me I still feel DFNS is very undervalued. And unless something big happens one way or another I will be staying in it. Whether I try and ride it to $1 is another story but I don't foresee me selling it at these prices. If something changes with the company I will have to reevaluate but at this time I see a LOT more upside then downside.

Have a Great Trading day
Steve Hoven

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