3SOF

ARTX - Arotech Corp

Profile: Arotech Corporation and its subsidiaries engage in the development, manufacture, and marketing of defense and security products worldwide. It offers armoring for military and nonmilitary air and ground vehicles; interactive simulation for military, law enforcement, and municipal markets; and batteries and charging systems for the military.

website: http://www.arotech.com/

The Idea

ARTX is a Nasdaq stock under a dollar.. :-X  immediately this should send up a flag that it will be delisted soon.  So why have we chosen it for out portfolio?

-ARTX mkt cap is around 42 million according to yahoo.  But..ARTX has a backlog of 39million!.  This was reported with the recent 22million order: http://biz.yahoo.com/bw/060410/20060410005545.html?.v=1

-According to the chart some buyers may have recently gotten interested in the stock.  Volume is picking up heavy along a 5 month support line.  We have a clear safety area below to stop into making this risk/reward very much worth it.

Long-term Chart:

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=19627)

Short-term Chart:

(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=19628)


Trade Plan

Its always nice to follow the big money.  On ARTX we had over 15 million shares traded yesterday and over 35million a few days back.  That is serious cash betting that this support will hold.  As we have a tight stop area <15% on this Nasdaq penny it makes the trade quite attractive.  If that triangle breaks higher.. we will have quite a play on our hands.

We will buy ARTX @ market open.

any opinoin about this:
ARTX: Agreement w/Mansfiled re Exercise of Warrants
Wednesday, April 12, 2006 11:35 ET

Arotech Corporation (ARTX) and Mainfield Enterprises Inc. agreed to amend certain of Mainfield's existing warrants (consisting of 155,700 warrants to purchase common stock at a price of $2.20 per share, 1,063,829 warrants to purchase common stock at a price of $1.88 per share, and 225,000 warrants to purchase common stock at a price of $1.38 per share - a total of 1,444,529 warrants) to provide for an exercise price equal to $0.40, in exchange for immediate exercise by Mainfield of all such warrants, with the exercise price being deposited in a collateral account to secure the Company's obligation to repay its 8% secured convertible debentures due in September 2006. The Company also agreed to issue to Mainfield 577,812 warrants, expiring on March 31, 2008, with an exercise price equal to $0.594 per share.

???

BUYINS.NET: ARTX, IPII, LSBK, OTD, PRGX, QRCP Have Been Added To Naked Short List Today 
09:06 a.m.  04/17/2006 

Apr 17, 2006 (M2 PRESSWIRE via COMTEX) -- www.buyins.net, announced today that these select companies have been added to the NASDAQ, AMEX and NYSE naked short threshold list: Arotech Corporation (ARTX), Imperial Industries, Inc. (IPII), Lake Shore Bancorp, Inc. (LSBK), O2Diesel Corporation (OTD), PRG-Schultz International Inc. (PRGX), Quest Resource Corporation (QRCP) . For a complete list of companies on the naked short list please visit our web site. To find the SqueezeTrigger Price before a short squeeze starts in any stock, go to www.buyins.net .

EliteG,

When I enter ARTX in finance.yahoo.com it is written "ARTX is deficient and delinquent". Any idea about that?

Thanks,
Ohad

Quote from: la-onda on April 19, 2006, 03:45:57 AM
any opinoin about this:
ARTX: Agreement w/Mansfiled re Exercise of Warrants
Wednesday, April 12, 2006 11:35 ET

Arotech Corporation (ARTX) and Mainfield Enterprises Inc. agreed to amend certain of Mainfield's existing warrants (consisting of 155,700 warrants to purchase common stock at a price of $2.20 per share, 1,063,829 warrants to purchase common stock at a price of $1.88 per share, and 225,000 warrants to purchase common stock at a price of $1.38 per share - a total of 1,444,529 warrants) to provide for an exercise price equal to $0.40, in exchange for immediate exercise by Mainfield of all such warrants, with the exercise price being deposited in a collateral account to secure the Company's obligation to repay its 8% secured convertible debentures due in September 2006. The Company also agreed to issue to Mainfield 577,812 warrants, expiring on March 31, 2008, with an exercise price equal to $0.594 per share.

???

I noticed this.. and decided we are going to run this play on a technical level.. so this item does not factor into the decision making process.

Quote from: DannyOhad on April 19, 2006, 02:26:24 PM
EliteG,

When I enter ARTX in finance.yahoo.com it is written "ARTX is deficient and delinquent". Any idea about that?

Thanks,
Ohad

If you check the top of the trade analysis I mention that ARTX is a Nasdaq stock under $1 and so it will be delisted..( a rule of the nasdaq)... we are playing this anyway because we have a technical setup(volume at 5 month support) on a stock with a $39,000,000 backlog and only $42,000,000 mkt cap and a recent order.  ;)

I almost got a position filled on this stock today, too.  I tried for 44 cents after lunch, but it never came down quite far enough to fill it.  I'll try again tomorrow!   ;D

Leaira

I got in at .44 this morning.  ;D

Anyone have an idea why this is so much down afterhours?? Now trading at 0.45...

Quote from: Athakinu on April 19, 2006, 05:34:23 PM
Anyone have an idea why this is so much down afterhours?? Now trading at 0.45...

Because it shouldn't be up so much  ;).. the end of the day bid/ask was around .45.. but suddenly a crazy order came through making it seem we closed much better than we did(you can see this on lvl2).  This could be a way to manipulate the stock making it look much more attractive with a nice looking candle.  We'll see where ARTX decides it should be tomorrow.

Looks like we are setting up for a good day tomorrow.

Ok thanks. I realized this shortly after I posted this when I looked at the intraday chart. Now we have this tall white candle with more than 2 times average volume. This has an attempt of manipulation written all over it...

looking at fundamentals here as I was in ARTX a while back.  The backlog is SUPER impressive as is price/book value....but where do they get the cash to build for those orders?  Only 27MM between cash and receivables in last financials.  Seems like a risk for significant dilution?  What are your thoughts?

Quote from: sbippy on April 19, 2006, 07:47:03 PM
looking at fundamentals here as I was in ARTX a while back.  The backlog is SUPER impressive as is price/book value....but where do they get the cash to build for those orders?  Only 27MM between cash and receivables in last financials.  Seems like a risk for significant dilution?  What are your thoughts?

That is always a concern and probably got them into this mess(delisted) in the 1st place.  The financials only show up until a certain date.. I believe the lastest is end of 2005 so there could be more cash available but we are not speculating based on this.  We are holding a position based on an interesting/safe technical setup.  These technicals could be hidden fundamentals at work.  ;)


update ARTX:

An interesting fill at the end of day gave us a great looking close.  Doubtful that this will hold into tomorrow but as always the market has the final say.  So we now have our position.  Time to set our stop.

------
Position: bought ARTX @ 0.4525 on 4/19/2006
Order: Hold
Exit: stop @ 0.3900
Target: n/a

Elite One,

What are your thoughts on the price malipulation with ARTX.  Same with Friday.

Quote from: bmarc4211 on April 24, 2006, 12:20:52 PM
Elite One,

What are your thoughts on the price malipulation with ARTX.  Same with Friday.

Nothing unusual.. I could try to come up with a plotline for it but it is not needed.  ;)  Plan the trade, trade the plan.  Oh and its Mr. Elite One.. LOL :D.. please just call me G.  ;)


update ARTX:

It would be nice if ARTX could bounce here @ support.  We are counting on that volume to come in again soon.  If not we have our plan for exit.

------
Position: bought ARTX @ 0.4525 on 4/19/2006
Order: Hold
Exit: stop @ 0.3900
Target: n/a

Why is Arotech seeking stockholder approval for the third proposal?

A.   Our board of directors believes that we should implement a reverse stock split to reduce the number of issued and outstanding shares, which are a result, in part, of the Company's past acquisitions and financings. In addition, our board of directors believes that a reverse stock split will facilitate the continued listing of our common stock on the Nasdaq National Market and may enhance the desirability and marketability of our common stock to the financial community and the investing public.

Our common stock is quoted on the Nasdaq Stock Market. To be quoted on the Nasdaq Stock Market, among other things, a company's common stock must maintain a minimum bid price of $1.00 per share. On September 27, 2005, the Nasdaq Stock Market, Inc. notified us that our stock had traded for more than 30 consecutive trading days below the $1.00 minimum bid price, and that we had 180 days following our receipt of this notice from the Nasdaq Stock Market to trade above $1.00 for ten (10) consecutive trading days, or we would face delisting from the Nasdaq Stock Market. The bid price of our stock remained below $1.00 during this entire 180-day period, and accordingly, o n March 27, 2006, we received notification from the Nasdaq National Market that we were not in compliance with this minimum bid price rule and that we would be delisted. We have appealed this decision, and the Nasdaq Stock Market stayed our delisting pending our appeal. If our appeal is not successful, we will submit an application to list our stock with the Nasdaq Capital Market. The Nasdaq Capital Market has the same $1.00 minimum bid price rule as the Nasdaq National Market; however, under the rules of the Nasdaq Capital Market we have an additional 180 days, or until September 23, 2006, in order to regain compliance with the $1.00 minimum bid price rule. If we do not regain compliance, and our common stock is delisted from the Nasdaq Stock Market, trading in our common stock, if any, would have to be conducted on the OTC Bulletin Board or in the over-the-counter (or "pink sheet") market. This would likely significantly decrease the liquidity of our common stock. We believe that by reducing the number of shares of our common stock outstanding through a reverse stock split, the bid price of our stock may increase proportionally and we may be able to meet the Nasdaq's minimum bid price requirement, although there is no assurance that this will occur.

Additionally, if we effect the reverse stock split, our board of directors believes that the resulting reduction in the number of our outstanding shares of our common stock will better reflect the current market environment, will be more consistent with comparable companies and may encourage greater interest in our common stock by the investment community. Our board of directors believes that the current market price of our common stock may impair its acceptability to institutional investors, professional investors and other members of the investing public. Many institutional investors have policies prohibiting them from holding lower-priced stocks in their own portfolios, which reduces the number of potential buyers of our common stock. In addition, analysts at many leading brokerage firms are reluctant to recommend lower-priced stocks to their clients or monitor the activity of lower-priced stocks. A variety of brokerage house policies and practices also tend to discourage individual brokers within those firms from dealing in lower-priced stocks. Some of those policies and practices pertain to the payment of brokers' commissions and to time-consuming procedures that make the handling of lower-priced stocks financially unattractive to brokers. Our board of directors believes that if the reverse stock split raises the trading price of our common stock, our common stock may be more attractive to the investment community, which may increase the liquidity of our common stock.

yukiii - thk you for this info but as stated in the original analysis we are full aware of this issue.  It is this exact controversy that we are trying to take advantage of with a nice technical pattern.  Please post a link next time to such information.  ;)

I still haven't gotten into this stock yet.  Is it still a good time to buy this?  The technicals seem to show a little weakness now.

Leaira

Quote from: Leaira on April 25, 2006, 11:27:19 PM
I still haven't gotten into this stock yet.  Is it still a good time to buy this?  The technicals seem to show a little weakness now.

Leaira

I agree Leaira  :).. technicals do show weakness here.  We had volume backing our buy a few days back.  If this picks up tomorrow with volume then I would say its a go.  We have a tight stop @ .39.

Not much price movement, but at 2 pm some jaw dropping volume today:
Volume: 17,631,140
Avg Vol (3m): 3,574,740
Any theories???

I would say this one is more bearish than bullish.  Volume has been increasing to the downside.  ADX is very weak (barely above 10), so it's no longer a trending stock.  But like you said, there was a lot of volume and not much movement. 

Leaira

Quote from: Leaira on May 03, 2006, 04:50:04 PM
I would say this one is more bearish than bullish.  Volume has been increasing to the downside.  ADX is very weak (barely above 10), so it's no longer a trending stock.  But like you said, there was a lot of volume and not much movement. 

Leaira

Volume increase on a downward price move is a sign of support Leaira  ;)..  This is exactly what we are counting on in ARTX to help launch it.  Low ADX can also be looked on as plenty of money on the side ready to move in.  ;)

We have a tight stop on ARTX.. and now this nice increase in volume perhaps it can make its move.  ;)

Quote from: Leaira on May 03, 2006, 04:50:04 PM
I would say this one is more bearish than bullish.  Volume has been increasing to the downside.  ADX is very weak (barely above 10), so it's no longer a trending stock.  But like you said, there was a lot of volume and not much movement. 

Leaira

I agree... this one is really bearish...price not even above 50(SMA) weekly chart

For Safer play ..I always pick a stock that closes above 50(SMA) before triggering my trade (WEEKLY CHART)

Force Index is a bloody one indicating a downtrend will likely to continue...

Quote from: Terliso on May 08, 2006, 12:33:53 AM

Quote from: Leaira on May 03, 2006, 04:50:04 PM
I would say this one is more bearish than bullish.  Volume has been increasing to the downside.  ADX is very weak (barely above 10), so it's no longer a trending stock.  But like you said, there was a lot of volume and not much movement. 

Leaira

I agree... this one is really bearish...price not even above 50(SMA) weekly chart

For Safer play ..I always pick a stock that closes above 50(SMA) before triggering my trade (WEEKLY CHART)

If u look all the charts one by one in 3SOF best picks... price is always above 50(SMA) when they bought it GV,GIGM,BRVO,VPHM,AOB ... many more ;)

Quote from: Terlisa on May 08, 2006, 12:51:43 AM

Quote from: Terliso on May 08, 2006, 12:33:53 AM
For Safer play ..I always pick a stock that closes above 50(SMA) before triggering my trade (WEEKLY CHART)

If u look all the charts one by one in 3SOF best picks... price is always above 50(SMA) when they bought it...

Learning slowly to read charts, I looked at the MA(50) of the last 10 closed trades in the 3SOF portfolio, on a DAILY chart (which appears to be the 3SOF team's way of charting), and all those stocks closed above MA(50) on the day before purchase. I excluded EZM because it was not traded long enough to have an MA(50)

Of the 12 currently open trades, on a daily chart all stocks except ARTX closed above MA(50) on the day before purchase.

Looking at the MA(50) of the above-mentioned 3SOF picks on a WEEKLY chart (Terlisos's way) I see that all except ARTX also closed above MA(50) on the Friday before purchase. In other words, applying the additional weekly-chart MA(50) analysis to the 3SOF picks one would not have bought EZM (44.37% profit) and ARTX (still open, at last close down 4.97%, if it stops out at $0.39 a loss of 13.81%)

I think this is going to be a buyback play for 3SOF just like what happened to CHID ....3SOF bought CHID below 50(SMA) then they sold it then bought back above 50(SMA) WEEKLY CHART...that was a good move. ;)

update ARTX:

ARTX put in an extremely low volume day today so we are on watch for an expansion move.. either way.  We are going to move our stop on ARTX up to .41.. this is extremely tight but no need to mess around anymore.. ARTX produces or its gone.  ;).. We'll also put a target sell above .50 if we do get a spike.


------
Position: bought ARTX @ 0.4525 on 4/19/2006
Order: Hold
Exit: stop @ 0.4100
Target:  sell above .5000
------

Quote from: Terliso on May 08, 2006, 11:44:43 AM
I think this is going to be a buyback play for 3SOF just like what happened to CHID ....3SOF bought CHID below 50(SMA) then they sold it then bought back above 50(SMA) WEEKLY CHART...that was a good move. ;)

Lol.  I was thinking the exact same thing.  I held CHID after the sale by 3SOF and will hold ARTX the same way.  There is a fundamental lack of patience on these less than $1 stocks that does not work - they have wider swings.  Stock charts are simply a pictorial representation of statistics, and the old saying of lies, damned lies, and statistics holds true.  Happy to be in CHID at 38 cents.  I am guessing I will get to say the same on this one in the not too distant future.

Quote from: bigdogs99999 on May 09, 2006, 09:08:59 AM

Quote from: Terliso on May 08, 2006, 11:44:43 AM
I think this is going to be a buyback play for 3SOF just like what happened to CHID ....3SOF bought CHID below 50(SMA) then they sold it then bought back above 50(SMA) WEEKLY CHART...that was a good move. ;)

Lol.  I was thinking the exact same thing.  I held CHID after the sale by 3SOF and will hold ARTX the same way.  There is a fundamental lack of patience on these less than $1 stocks that does not work - they have wider swings.  Stock charts are simply a pictorial representation of statistics, and the old saying of lies, damned lies, and statistics holds true.  Happy to be in CHID at 38 cents.  I am guessing I will get to say the same on this one in the not too distant future.

Bigdogs, CHID & ARTX are different..
CHID is trading in OTCBB exchange & ARTX is trading in Nasdaq, if ARTX don't get the price above a dollar soon the company will either do reverse split or get delisted from NasdaqSC & will end up to these exchage if the company will get delisted (Pinksheet or OTCBB).

I've traded numbers of stock from Nasdaq that get delisted, recently was INSG now it's INSGY.PK
I bought that stock @ 0.34 but i'm quick enough to cut my loss @ 0.32 now it's trading in pink @ 0.16 :D ;D

Here is the thread if you are interested: http://www.3stocksonfire.org/trading/index.php?topic=4820.0

Thanks for the heads-up Terlisa.  Yes, a reverse split could occur - that news has been out.  The CHID reference is more to how quickly $1 can be achieved.  I take some solace in the fact that Renaissance Technologies is the second biggest institutional holder and it doubled its position in the first quarter.  Obviously a position in ARTX is nothing to Renaissance, but it is THE hedge fund and it only buys companies when its computer modeling predicts large jumps (as I understand it).   ???  Anyhow, this stock is fundamentally undervalued, and according to how you slice and dice the chart, may be hitting a double bottom Bollinger band breakout (suddenly I feel so alliterative).  I'll suffer a bit more for the cause and stick with the nerd team at Renaissance   ::)

Terliso / Bigdog, nice coverage on this one.

Thanks and Applaud

uc.