Wednesday, January 23, 2008


( I wrote this up yesterday but forgot to post it until this morning... )

Nice day in DFNS today.

Good Volume, UP 20%+. Congrats to those that got in when it was in the mid .20's.

DFNS got the SEC issues out of the way with there NEW 10Q's for Q1 and Q2. Not much of a change as far as profits etc...

With that behind them they were able to issue a press release yesterday morning. (It was a holiday so no trading happened.)

This is part of what the news release had to say.....

"We had a net profit of $1.2 million for the nine months ended September 30, 2007, compared to a net loss of $400,000 in the same period last year.”

“In 2007, the Israeli's Defense Ministry's was our major customer and we expect it to continue to be our largest customer in 2008. At the same time, we continue to diligently seek new sales and marketing channels worldwide, while constantly broadening our offerings. Our U.S.-based subsidiary, Own Mills, recently launched a new production line of protective ceramic plates using new technology and machinery. We are witnessing substantial demand for this new product both in the U.S. and worldwide.”

Mr. Postbinder concluded, “I believe that we are well positioned for growth and expansion in our markets and we look ahead optimistically that our share price will in time reflect our company's true value.”
The company has high hopes for the future which is good.
Again if we step back this is a company that will grow their revenues by 60%+ for 2007 over 2006. Will have a good amount of profit (even if Q4 comes in at a loss which I don't know if it will or not) They increased book value etc..

If today was the first time I heard about DFNS it would be on my radar and be interested in buying it of course. But it has been 9 months since the orginal StockDoubling pick of DFNS so we have seen the ups and downs.

Yes I still think it is undervalued, but without some major news new orders or the 10K report (by March 30th) I don't foresee an increase above .50. But I do think its lows are in and we could bounce around the high .20's to low .40's.

This is a stock where the CEO owns the majority of the stock so the pace of news releases isn't as much as a HYPED stock. So it will take some patience. Those that got in DFNS in the .20's will be rewarded nicely I think. Those that were in like me at .50's will have to have some patience.

Wednesday, January 2, 2008

2nd Project? and DFNS NEW YEAR!

Hello StockDoublers,

I hope you had a good Christmas and New Year.

I wanted to update on a few things...

1. Thank you for taking part in the poll I will PROBABLY come out with a 2nd StockDoubling project at some point but it won't happen until at LEAST the end of January or the beginning of Feb. So don't look for another pick until than. I, will of course update you when things are closer and I have more information on it all etc...

2. DFNS is trading at .27 right now not many shares trading yet this morning. It is still odd to me why its down this low. Unless something underlying is going on as far as slow growth going forward etc.. It just seems way undervalued.

Book Value is .24
The 4th quarter just ended a few days ago we won't see any news on that until the end of March or early April.

With roughly 29,000,000 shares outstanding and a .27 share price it puts the market cap of the company under $8,000,000. The company should do at LEAST $16 million for the year just ended so we are trading at well less then 1x Price to sales. The company grew at a large rate this past year on earnings and sales yet is lower in share price then it was at this time last year very odd.

I know the SEC issue is there but from what it looks like is quite small and much to do about nothing. We will see if the sales are in the $3 million + range for Q4 and if they can make money I don't know if they will or not.
But aside from the company imploding it just doesn't look like a lot of downside at this point so I don't see a reason to sell. Even if the company could only do $10 million in revenue next year it is still trading at less then 1 to 1 Price to sales and just over 1 to 1 Price to Book. So I see no point of selling at these levels. If new information comes out etc... I may change my mind but at this point I think its bound to rebound some.

Last year in January the company came out with a news release that the Israel Defense Ministry just ordered $5 million worth of products which sent the stock soaring. I don't know how the budgets are in Israel if its based on the calendar year etc.. But if it is then this month maybe a good one as far as new releases of new orders. Assuming of course they actually get new orders. I wouldn't expect any BIG orders or orders at all from the Israel Defense Ministry as they still have a backlog that they have to run thru and how many vests etc. do you really need? I would love to see some bigger orders for the buses or wall covering etc.. I think that would be a positive sign especially if its from other countries.

A lot of times to start the year you see rallies in stocks that are considered "VALUE" plays. Companies that seem quite undervalued. DFNS actually has rallied nicely to start the year each of the last few years. We will see if that trend continues for it this year or not. Hopefully it will.

I would hope to see some news from the company either on the SEC and/or New orders over the next 60 days. Failure to see ANY news from those two fronts wouldn't be good news going forward in my opinion.

Right now we are in wait and see mode. I have confidence that the stock will rebound to prices that reflect the business facts.

Have a good day
Steve Hoven