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Thursday, July 24, 2008

Stock Profile: Force Protection Inc. [NASDAQ:FRPT]

This is a summary of the report to read the full report (click here)
Company
  • Defense contractor specializing in armored vehicles
  • US company that sells to overseas buyers as well
  • Product lines crucial in modern warfare
Summary
  • 2 principle competitors AM General, BAE Systems
  • Many new contracts
  • Competitively priced vehicles
  • Support services will provide steady income
Earnings
  • Next Earnings Release: July 28, 2008 18:00 EST *

  • Low estimates this quarter
  • Missed earnings last quarter
  • New contracts could push earnings past expectations
Technical Analysis
  • The stock went from $1 to high of 28.
  • The stock created a head and shoulders pattern.
  • Fell all the way down to $3, which was where the rally began.
  • Currently the stock is in a accumulation mode.
  • This means that good earnings or good news should move the stock higher.
  • The trend remains bullish.
Verdict
  • Buy and Hold

Products
Buffalo


Cougar

*Correction- Previously announced date, real date is TBA

16 comments:

Anonymous said...

Nice pimped out rides

Anonymous said...

Don't know much about the company but looks good

Sanjay Krishnan said...

Yeah they have existed since the DotCom bust

MasterSpeculator said...

Hello, I am a technical analysis newbie. But, I think the stock went through a accumulation period between 2002-End of 2005.

The stock peaked created a head and shoulder at the top couldn't sustain because not much buying went into it.

Then tail snipped down, I think this stock is in a base building process.

Anonymous said...

how do you know earnings are coming out on the 28th.

Sanjay Krishnan said...

Finance.aol.com...

Anonymous said...

Is this the replacement for the hummer

MasterSpeculator said...

You mean Humvee?

Sanjay Krishnan said...

To Logan,
In a way the cougar and cheetah satisfy the HMMWV role. But they are better at counter insurgency and urban warfare situations because of their resistance to IED's. An AM General HMMWV, which is known to you as a Hummer, is basically a SUV with guns. However both are still more vulnerable than a Main battle tank, since they are unprotected against EFP's and Anti-Tank Missiles.

Sanjay Krishnan said...

Oh yea if you want to understand their business better read these articles from wiki
http://en.wikipedia.org/wiki/HMMWV
http://en.wikipedia.org/wiki/MRAP_(armored_vehicle)
http://en.wikipedia.org/wiki/Mine_protected_vehicle

Sanjay Krishnan said...

Basically the MRAP is the successor the the HMMWV

Anonymous said...

Hi, the great sir.

I am from the City India of Nagpur.

I have question..
What is difference with the roles of Ambac, MBIA compared to Fannie, Freddie Mac..

Looking for your reply, Sir.

Sanjay Krishnan said...

That's off topic but Srinivas will answer that question, I'm not good with the mortgage industry.

Anonymous said...

This looks like a good investment at the current share price. p/e is above $6. Mabey it is a long term buy and hold.

Sanjay Krishnan said...

Correction, I found out that the earnings date I had placed on the report was an old date and I apologize for any inconvenience. Apparently the company changed their accounting staff so their schedule is on hold. This doesn't change my verdict on the stock

Anonymous said...

http://www.mercurynews.com/ci_9980319?IADID=Search-www.mercurynews.com-www.mercurynews.com
read this article about MRAPs