Force Protection: Interesting Developments

Discussion in 'Stocks' started by ByLoSellHi, May 3, 2008.

  1. I like this stock at these levels. I know there is a lot of litigation regarding the company, and I know that their are a lot more competing MRAP vehicle makers now than a year ago, but I like FRPTs intellectual property (i.e. designs).

    The stock got crushed down all the way to $1 just a few weeks ago (having traded as high as $25 as part of the war boom-bust cycle), but has since bounced to $3.59 partly based on orders for Cougars from the U.K. Defense (or 'Defence' as our more former ex-colonialists spell it) Department.

    Those orders were just announced yesterday, hence the 16% bounce in the stock.

    The company has a pretty decent balance sheet, is flush with cash, and apparently has resolved some of its manufacturing capacity issues.

    Regardless of who wins the elections in November, and regardless of a withdrawal from Iraq, are blast resistant vehicles really not going to be in demand by militaries and even NGOs (e.g. NATO or the United Nations) in the future?

    What sayeth you, clairvoyant ET? Yayeth or Nayeth?
  2. I rate the stock as avoid. Unless you need to lose money for tax purposes, I say pass.