Thursday, March 27, 2008

Still Waiting on DFNS

Still waiting on the DFNS 10k report. I would say it will probably
happen on Monday March 31st now. Hopefully it won't happen after the
market closes today or before tomorrows open. Usually when companies
dump news on Fridays it isn't too good.

The weekend tends to stop momentum so if its bad Friday is the time to
release it.

So I am hopefully that Monday will be the day. If they don't release it
by the open on April 1st they would be considered late. (They were a
few days late last year. I don't think they will be this year though.)

As of this writing you can buy for .38 and sell for .34. Unless they
come up with horrible quarterly results or follow up news (IE sales are
going to be horrible for 2008) I think we head higher unless the news
is real bad.

The problem has been lack of volume lately. Averaging less than 20,000
shares a day for the last 2 weeks. They need to hire a better Investor
Relations person.

You have a company that has a book value of roughly .43 per share and
has earnings right now of .043. If they were trading at .43 per share
they would be trading 1x book value and 10x P/E and less than 1x Price
to sales.

I think if they earned any kind of profits for their Q4. We will see
the stock close the gap to .50 range. Which is about a 30% move up from
these levels.

Downside is pretty limited at this point I think. They have a nice book
value. (Even they closed for business after paying debts they would
still have .43 per share)

Any downside based on the 10k report I think will be short term. Unless
it just is a totally blowout to the downside. But I can't think of a
reason for this stock to be trading lower than .30 that would well
under book value, P/E would be low and P/S really low.

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