DFNS THOUGHTS

DFNS has a little bit of action today.

It hit a low of .55 today and has been in the .55-.56 range. Sometimes the ask bumps up to .58.

I bought 2,000 shares yesterday at .56 for my IRA and last week bought 1000 at .58 for my IRA.

Not much has changed from my post a few weeks ago.

I feel the company needs to come out with some positive news prior to their Q3 to get the thing moving. If no announcment comes I feel that a disappointment could be in store for Q3 #'s and could send the stock to the .40's.

If we do get an announcement I think we could be in the .60's prior to Q3 and move up nicely from there should we get a positive Q3 announcement.

The company should do $17-18 million in revenue for the year. It has roughly 29 million shares outstanding. So a .60 stock price would put the Price to sales at roughly 1. It has a book around .20 so Price to book is around 3. They have earned .035 roughly for the year so far I would think they could do .07-.08 for the year depending on how Q3 is. At .07 EPS for the year a .60 stock price would be 8.5x P/E. Growing at the rate that DFNS is growing at least this year I would think a 12x PE would be reasonable for them. Which would mean roughly .84 share price. I think if they could earn close to .10 EPS for next year and get a 12x PE you are talking over $1.20 share price. Which if they get the orders wouldn't take too much.

The question though is can they keep expenses under control? If they have a breakeven or losing quarter for Q3 this stock will probably go down to the low .40's if not lower. It has been a stalled stock as of late and a lot of people are feeling antsy so that is why we have drifted down as we have.

I still have a lot of faith in DFNS. I think their investor relations is lacking for sure and should offer more support that way. But that is one of the drawbacks as well when the CEO owns the majority of the shares.

This month will determine whether we see low .40's or mid .70's+.

Have a good day
Steve Hoven
alleycatnews@alleycatnews.net

OUT OF CAGC AT $5.20 116% PROFIT

I just sold my CAGC shares at $5.20.

Bought at $2.40 on August 17th.

That is a 116% profit in less then 2 months. I will take that. If it continues to run GREAT. But I am fine with that kind of return.

TATTF having a nice day so far as well.

Right now I only own 2 stocks

DFNS for the stockdoubling project. (And some shares in my IRA)

And

TATTF for the monthly stockdoubling project.

Have a great trading day
Steve Hoven
alleycatnews@alleycatnews.net

CAGC WOW!!!

Just 2 days ago I wrote about CAGC and said I thought it was still a good investment over the next 6-18 months with a target of $5-$7. Well it took off yesterday and almost hit $5 already!

I got in on August 17th less than 2 months ago at $2.40 which is a double in price based on yesterdays close.

I will monitor it today if we get higher prices above $5 per share I may consider an exit at that point. That was my target anyway and if its going to give me those kind of profits that quickly then I will take it. I probably won't sell for less than $5 though. I still think it is solid going forward and will do well. So I am not going to give it away.

TATTF which is the stock for the monthly project also did well yesterday that is up roughly 16% from my purchase price just 2 weeks ago.

DFNS had a little bit more volume a few more 10,000 share blocks are trading which is good and now it is in the higher end of the .50's range. That is the only stock that I have held lately that hasn't done really well. So maybe its due for a nice move coming we will see.

I will let you know what I do with CAGC.

Have a great trading day
Steve Hoven
alleycatnews@alleycatnews.net

Not available today

I will be gone today at the GOP debate in Dearborn MI.

So if DFNS takes off or tanks or CAGC or TATTF do anything you will be on your own today.

You can watch the debate on cnbc at 4pm though or MSNBC at 9pm. It will also be streamed live on the cnbc site at www.cnbc.com

Go Mike Huckabee Go.

It should be a lot of fun

Have a great day
Steve Hoven
alleycatnews@alleycatnews.net

CAGC moving today

CAGC is up nicely today 17% as of this writing.

I don't see any news release but the volume is strong. Maybe a buyer coming in and felt any price below X was a deal I don't know.

I will take it though its up almost 40% since the purchase back a month + ago at $2.40. Still at these levels is a good price if willing to hold 6-18 months. I think $5-7 is a real possiblity in that time.

DFNS still hanging around the .55-.60 levels. Not much will change unless holders get sick of holding and dump their shares. Or the company comes out with another order release which would send the stock above .60 again I think. Otherwise we will be caught in the .55-.60 range more than likely.

TATTF (a stock for the monthly project is up nicely over the last 2 weeks.)

Thank you for taking part in the poll. I will have additional ones in the future.

Have a great trading day
Steve Hoven
alleycatnews@alleycatnews.net

The stock market

China stocks have been hot lately.
Some of the stocks I have looked at in the past or owned in the past have really moved over the last couple of weeks. They can be very rewarding and very scary at the same time.

We have a new poll on our blog check it out and vote it is on the left hand side.

DFNS is asking .56 right now. Which is tempting but I think could come down a few more cents. If it does I will probably buy some more for my IRA.

The next month will be EXTREMELY IMPORTANT FOR THE STOCK.

I think we need to see some kind of good news IE a new order BEFORE the Q3 earnings.
That will get the momentum going and assuming Q3 is strong we can spring up to the .70's-.80+.

If we don't get any news I think its going to be tough for a HUGE move up after Q3. I would also be cautious about what Q3 will say. This is a company that is based on new orders coming in. And although they have said demand is strong it can dry up in a hurry for numerous reasons.
So if their isn't an announcement about a new order by NOV 9TH. I would worried about the prospects of this stock. I don't think the downside is a ton unless of course they come out with a horrible Q3. IE losing money etc.. But I don't think the upside is around the corner either if they can't close some additional orders.

If you haven't checked out the monthly stock picks you really need to they have been on FIRE. Our current pick is up roughly 8% in just over a week. (TATTF)

http://stockdoublingmonthly.blogspot.com/

Have a great weekend.
Steve Hoven
alleycatnews@alleycatnews.net

Update on a few stocks etc...

Happy Monday Morning,


1. AYSI has moved up a bunch today. We got out of the stock for a nice profit a couple of weeks ago at .44. (bought at .37) it hit a high of .69 today! If you stayed in that stock CONGRATS! A lot of volume with that stock not something I am interested in right now but a nice recovery from prices in the mid .30's.

2. DFNS just closed their 3rd quarter yesterday so we have to wait 45 days to hear what their 3rd quarter results will be. I would hope between now and then though we would see some announcements for additional orders etc.. We are still in profit with the stock so we have some wiggle room. But would hope for some prices in the low-mid .60's before the announcement I don't know if we will get their though without news.

3. CAGC also just closed their 3rd quarter yesterday. This will be a VERY important quarter for them. They would need to see some very good #'s in order for their estimates to hold true. I think after their 3rd quarter announcement (Nov. 15th) you will see this stock close to $4 or below $2. If they are bad I think people will just bail and move on. If its good they will jump on board. I am looking more for a 6-18 month investment so I will take the bumps in the road plus I have a good fill at $2.40 per share.

4. If you are interested in Forex Trading. I have my Forex trading software available for the next 2 weeks.
It can be found at www.LazyTrading.com It has a 8 week money back guarantee and 90 day Instant messenger support with me. Check it out if you are interested in forex trading.

Have a good trading day,

Steve Hoven
alleycatnews@alleycatnews.net