Monday, April 6, 2009

DFNS 10k report

DFNS came out with there earnings last week. And they weren't late! Which was a surprise!

Here is the link to view the 10k

sales for Q4 were very good. They did $18+ million for the year which isn't much less then they did all last year.

They announced a new night vision product partnership which seems interesting. They of course did the buy out of company they co-owned at the end of the year and bought back 1 million shares of stock.

So now there is about 28 million shares outstanding. Of which the CEO owns about 19 million shares. He is 62 and maybe will want to retire in the future. Maybe a buyout possible in the next couple of years?

They still have a good amount of cash and a nice backlog of orders.

The problems are a couple fold.....
1. They are earning money but not much about .02 eps for the year (not including one time payments) Well at 10x PE that is .20 stock which is about where we are now. Even if they double it for 2009 not saying they will but if they did that is still a .40 stock which isn't bad return but that is if all things go right.

2. They have a $2.6 million lawsuit against them. Now they may win the lawsuit so they won't have to pay out the money. (If they lost it that is a MASSIVE hit to there cash) But even if they don't lose they will be paying some legal fees for fighting the lawsuit which is going to eat into profits that are already small.

The float is small (a few million shares) So if the stock rallied for any reason over.30 I would consider selling. I sold my stock that I bought a month ago at .18 and sold it at .21 last week for a 16% profit. The only stock I currently own of DFNS is for the stock doubling project.

I think at this point DFNS is more of a trading stock then a buy and hold stock. If DFNS came back to the mid teens or low teens I would consider purchasing. For a rally to low .20's. If DFNS gets above .30+ I will consider selling DFNS for the stock doubling project and moving on with a new stock.

Have a great day

P.S if interested in a great trading system check out

Friday, March 13, 2009

DFNS news and TATTF

TATTF came out with a bunch of news lately.
1. Buying back some of there stock great news.
2. Came out with earnings which were ok.
3. Came out with book value and cash which is amazing!!
4. Came out with a dividend announcement which is like getting 10%+ return on your money in a couple of weeks! Very nice return.

I bought a couple of weeks ago at $4.30’s. It came down but its still a great buy under $5 if you are willing to hold it for a while.

I just bought DFNS this morning at .18 (5000 shares) they will be coming out with earnings at the end of the month more than likely not sure how good they will be but looking forward to what they say for the future.

Tuesday, January 20, 2009


I sold out of all my DFNS that ISN'T AFFILIATED with the StockDoubling project. So I still own 8000 shares of DFNS but I don't own additional shares. I had purchased DFNS in the .155-.19 range over the last couple of months.

I sold all that stock in the .20-.25 range over the last couple weeks. It was too good of profits to turn down. Some of it was 30% return in a month or two. I still like DFNS and will hold the orginal position. I don't think it will get to .50 any time soon but I would LOVE to see it back in the teens again so I could load up on it. Currently .22-.26 per share.

They came out with some great news over the last month. From a buyback and now they have bought out a minority interest in a company they had majority interest in. And they seemed to pay a fair amount for it. They also bought back 1 million shares as part of that deal which a 3% outstanding shares. (About 10% of the float if you assume the CEO won't sell his shares)

I may not be able to get back in the teens but trading DFNS has been pretty good for me. The orginal buy of course hasn't. When I get out of this position I don't know.

With Israel at war with Hamas right now (cease fire) how that effected DFNS I don't know. You would think sales would be strong of course the issue is did they sell there products at a profit. They seem to be using the $$$ they got from the gov't in a good way. I think if they can continue to make money even if its a couple cents per year I think these prices could double over the next couple of years. Downside is limited but do you want to wait it out that is the deal of course.

IF DFNS comes down to the teens I will buy more. If it goes to the .40's I would probably consider selling my StockDoubling pick stock.

On to other stocks I have talked about.
ITRA got bought out at $4 so that was a nice return for those of your who purchased in the $3's. I made a couple % on the stock. I didn't hold until the end though.

TATTF is another ISRAEL stock that I really like. They have a good amount of cash and still make some good money. They also own a great deal of LIMC and the company is buying back stock. I think eventually it will probably go private but that is just opionon.
I own the stock from a higher price. I will buy more for a trade if it gets back into the mid $4's. Right now its around $5.

If you haven't checked out the videos at yet you really need to I love the Market Wizards Insights one its great and you should check it out. Its FREE!