Wednesday, February 20, 2008


DFNS came out with news that the SEC inquiry is over and no need to make further changes.

The market likes it as it is UP a bit today on nice volume.

March 31st is the big day where they will have to release their 10k report. If DFNS broke even or MADE money for the quarter this stock will be in the .40's again. If they lost money we may be in the .30's for a while.

The risk/reward in the low .30's is still pretty good though I think.

At .33 and 29 million shares outstanding you have a company worth $9.6 million. The company should do close to $17+ million for 2007. So is trading at a discount to sales. The book value of the company is .24 and growing. They aren't issuing a lot of stock so that is a plus.

They have some smaller orders that they announced but nothing big.

I would think the revenues for Q4 would be in the $2.5-$3 million range.
Earnings is going to be tough. Heart wants it to be up but I think they may lose money based on what I see.

I hope to see some projections from the company on 2008 though that would be nice.

Have a good trading day
Steve Hoven