Friday, December 5, 2008


Long time no talk.

DFNS came out with their Q3 earnings in Mid Nov. The sales #'s were good though the earnings not as good as I would like to see. Though still profitable overall.

The company has about $8 million in cash and trading securities/bank deposit. Which is about .27 per share. The company is currently trading at .16-.19 per share. The book value is around .44

The company also announced a buyback of the stock up to $450,000. It doesn't mean they will buy back any stock but at least they announced it. IF they did buy back $450,000 worth of shares at an average price of .25 that would be 1.8 million shares they take out of the public. Which is about 6% of the total outstanding shares. However there is only about 10 million shares that aren't owned by insiders so that would really be taking out close to 18% of the public float.
Hopefully they start the buyback soon at these levels.

With the economy and the stock market the way they are things could go down more. However for a person willing to hold I think buying on at these prices are a steal at some point down the road. Its like going to the bank and depositing $1 and the bank giving you $1.40 or so into your account. You can't cash it out yet but its sitting there. Same thing with DFNS they have a lot of cash on hand and a profitable business and you can buy the shares for LESS then the amount of money they have in the bank.

We may have tax loss selling going into the end of the year as tends to happen with DFNS and DFNS tends to have a good Jan. You can look at the chart and see the pattern over the last few years.

NO I don't think DFNS will get to .50 anytime soon. But for 2009 I think we will go up a bunch from these current prices.

On to TATTF another stock I own.

They are buying back stock as well very slowly though. TATTF is down in the low/mid $4's they came out with earnings in NOV. which were less than I had hoped for sure however they have a book value over $10 per share and a good amount of cash. They have already earned .50+ EPS for the first 9 months so they are good deal as well.

With the markets both of these stocks I don't expect them to TAKE OFF. However if you are a long term holder these companies both have PROFITABLE business, lots of cash, are selling at a discount. So we will see they go up in price in the future I feel. When I don't know.

On a final note.
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