I don't have time to analyze much because we're just so close to the opening bell, I believe a trained eye looks at this chart and automatically knows it is a buy, what do you think:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=1250;image)
I could explain why DHB must be bought at this stage, but I don't have time. I'll probably do it in the updates after the close, I hope the price action validates my technical eye.
Everyday I will analyze DHB after the market close until I sell the stock. I always tell I'm going to sell before I actually take action. You just have to follow the answers to this post.
Everyday our team scans and filters 11000 stocks to come up with the 3 best stocks to buy on a short term basis. We run a diversified public portfolio which is up 133% since May 2005 (http://www.3stocksonfire.org/closed_trades.php). We have great traders in our community which take advantage of short term opportunities in stocks.
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stocks down in general because of oil?
David,
I have followed this stock since the high teens. For reasons I will not go into, management is not trusted by many retail investors. Pereaps those investors are gone and you have a new group coming in. My question to you is if in fact this matters to you, or is the chart, the new gov't order, and the momo enough for you. In other words, if you knew how corrupt former investors perceive management to be, would you still have pulled the trigger?
They massively dumperd shares at their peak, sending the stock into a tailspin.
I got burned on this stock a few months back. Although the chart looks nice, I would have to agree there is a lot of bad blood following it. I have to wonder if 9 was a key resistance area the stock failed to hold, or possibly it just fell due to pressure every stock was under today with a -160 DOW. It's difficult to judge what any stock is did when the when the market was under such selling pressure.
I'll wait on this one and see how it shakes. I too have bad memories about DHB.
Good Luck to those who are playing, hope I see the light and join you.
let me tell you what I think is difficult to figure out: fundamentals...specifically how fundamentals affect price. The study of price(patterns) and volume I believe has the fundamentals built in. Test it historically.
DHB "might" have upset investors but I think you need to guide your stock plays by what makes you money. By what makes the $value go up. Plain and simple. And you set your stops if the market decides you are wrong.
Sorry, but no time to update today. Keeping the stock.
David,
I agree with you on this one.
Great Industry, good margins, low valuation.
It is correct that insiders sold massively when the stock was around 20. It is funny for me that when Insiders sell at the top everybody complaints but when they buy at the bottom everybody is cheering. The last insider activity was a buy from the new President.
According to vectorvest.com >> DHB has a current Value of $16.66 per share. Therefore, it is undervalued compared to its Price of $8.79 per share.
And here's an interesting 3 part interview here from yesterday. Any thoughts?
http://messages.yahoo.com/bbs?action=m&board=1601910385&tid=dhb&mid=207703&sid=1601910385
http://messages.yahoo.com/bbs?action=m&board=1601910385&tid=dhb&mid=207704&sid=1601910385
http://messages.yahoo.com/bbs?action=m&board=1601910385&tid=dhb&mid=207705&sid=1601910385
Quote from: eliteG on June 24, 2005, 09:10:47 AM
let me tell you what I think is difficult to figure out: fundamentals...specifically how fundamentals affect price. The study of price(patterns) and volume I believe has the fundamentals built in. Test it historically.
DHB "might" have upset investors but I think you need to guide your stock plays by what makes you money. By what makes the $value go up. Plain and simple. And you set your stops if the market decides you are wrong.
Good post. Particularly the last sentence. Applause.
I'm wondering if my bad experience the last time I held this stock is keeping me from entering it now and possibly missing out on a profitable trade. Will keep watching it here and examining my bias against the stock. The psycological challenges of trading are the hardest part for me so far. I could be dealing with a part of it here.
anyone else buy DHB the last few days?
i did.
seems like a good company to me.
Hi Rocket,
Count me in! I love the fundamentals and if David say's OK for the chart it can't go wrong ;D
- They have grown revenue constantly since 2001
- One of their main competitors seems to be going out of business due to faulty vests
- They can't meet demand due to a shortage of Kevlar which seems to be resolved in Q4
- They are traded at a very attractive PE level
I am also still long in GIGM. Considering to add to my position. I can't wait for Q1, which will be out in July!
Seems we like the same kind of stocks :D
The trend is bullish on DHB. The stock didn't break out as a short term trader would like to, but considering the general market weakness it wasn't so bad after all. DHB is above it's 50 day moving average and the slope of that average is positive. We also have a short term ascending line that will probably support price - the stock did rebound from that line on Friday, to close near the open level.
I'm keeping DHB.
look dave, when u pick a stock it is only allowed to go UP.
I have to face it. DHB made a false breakout and the downside potential is considerable. We have a gap to close in the $7.62-$7.78 range. When a stock tries to reverse trend but it is unable to, this only empowers the prevailing trend, which in the case of DHB is bearish.
I understand and respect the theories posted by other fellow members but I have to keep loyal to my strategy, and that simple strategy says «sell DHB, take your loss, move on to another stock. Cut the losses, let the profits run».
Anyone can see I'm on a string of losses here ... it's a natural thing to happen, after a 120% plus portfolio profit in 2 months. The only way for a man to stop losing is to start gaining, and that can only be done in the market. I've decreased my exposure but I'm ready to start increasing it again, from a low of 66% cash probably to full invested in a few days.
As said I sold DHB at the open, price $8.60.
I bought DHB at $8.88. Stop is a close or obvious late day tank below $8.25. Risk is 7%.
I've been following it since it was a 3SOF. I like the 3 chart patterns. Today, DHB printed above the recent trading range high of $8.90 (Pattern in black). Looks like it could be ready to take out the top of the entire range (Pattern in blue)
Hi Melf Elf,
I also like DHB but probably for different reasons. They have a backlog of Bullet proof vests that they can't deliver due to a shortage of Kevlar which will be resolved in H2 when a new factory is finalized. In addition to this one of their main competitors seems to be going out of business (some of their bullet proof vests was not so bullet proof!)
It is not all good news though. Brooks who bought the company out of bankruptcy has a bad habite of giving himself stock options. Even though it is insignificant compared to the earnings of the company it still p.. off a lot of shareholders.
All in all you should see a run up in H2. This might be too long time for some people on this board but good enough for me. As you said the downside is very limited.
I like to think about this as a bullet proof investment ;D
QuoteI like to think about this as a bullet proof investment
Michael,
I give you applause for your fundamental analysis. I didn't even know what this company did, I get so busy with trying to analyze charts! ;)
You do a great job at the fundamentals, and I really appreciate it. Let's make some $$$ on this one (and, others) :)
QuoteToday, DHB printed above the recent trading range high of $8.90 (Pattern in black). Looks like it could be ready to take out the top of the entire range (Pattern in blue)
Okay, Michael, we gapped up at the open, above the rectangle (Pattern in black), and we're at the top of the entire range (Pattern in blue). DHB currently is 9.35 BID ... 9.37 ASK, up $0.47. The technical breakout is a print of $9.37, which we just got. I'd like to see the June 22 high of 9.45 get taken out.
DHB was rightly punished for a disappointing Q2 report.
Earnings were flat at 0.17 per share and revenue grew only with around 2%.
The fundamentals are however still strong. As said previously the shortage of Kevlar has hampered the growth of the company. This issue should be resolved later this year when Dupont opens a new factory.
The sector is extremely hot with the focus on terror.
The industry is under consolidation
They generate a lot of cash every quarter
It is now traded with a PE below 10.
I believe the stock will bounce from here and that they will surprise on the upside in Q3. I have therefore bought DHB at 6.72.
Mike
Not much news about DHB but the uptrend continues. It seems like we are in the process of forming a reverse head and shoulder formation.
DHB is fundamentally undervalued so I would expect a significant increase from here.
Hmmmm I love the technical setup – very prophetic title for this thread. I really love the technical setup. This is one of the most perfect inverse head and shoulders I have seen.
Left and right shoulder is symmetrical, volume is higher at the left shoulder and head.
Only one thing is missing and that is the breaking of the neckline. I do however feel that this is just a matter of time.....
Hey Michael,
I am a rookie when it comes to TA so I won't doubt you there, but i was curious....I've seen you mention you are big on fundamentals and that this company is undervalued based on key statistics. I can't tell if the growth of the company has a positive outlook, Do you forsee good growth potential based on future contracts that would essentially attract investors. Thanks...
Hi Patriot
I have to say that this is a very appropriated name when we talk about this company ;)
I could write two pages about why I believe in DHB but let me instead show a few pictures:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=4252;image)
Hmmm.... That is what i call a proven track record!
So what is driving the growth:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=4254;image)
DHB is a clear market leader:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=4253;image)
I am therefore confident that they will continue to grow there net profit:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=4255;image)
This is the short version of why I believe that a company like DHB in a world that is more and more concerned about security is fundamentally undervalued when it trades at a PE around 10!
Mike
Thanks Mike,
It does look impresive and and I certainly agree with the increased demand considering I am a soldier myself and use body armor everyday. I don't think we are wearing DHB, I think it might be Point Blank. I will look and see if they are a valid competitor, most likely the military went to the cheapest bidder. But this definitely looks interesting I appreciate the input.
I was reviewing my watch list and saw that something went bad with DHB. Here's the news and some analysis from a fool:
«DHB Industries, Inc operating principally in the growing field of body
armor, announced on August 30, 2005 that, although it remains confident in the
safety and performance of its body armor products containing Zylon(R), it
discontinued the use of Zylon(R) in its bullet resistant products on August 24,
2005. The Company ceased production of all Zylon(R)-containing bullet resistant
products due to the National Institute of Justice's (NIJ) decision to revoke the
NIJ's previously issued certifications of all vests containing Zylon(R) in the
marketplace. The Company also announced that it will be implementing a Voluntary
Replacement Program to assist its customers who presently have non NIJ-compliant
Zylon(R) body armor.
This Voluntary Replacement Program is not a product recall. This action
is a result of the de-certification by the NIJ of body armor with Zylon(R),
which will result in certain customers having body armor that will not be in
compliance with the new NIJ requirements. This program will assist the law
enforcement community in replacing its Zylon(R) body armor with, NIJ-compliant
body armor.
The Company will record a charge to third quarter earnings to account
for the anticipated cost of the Zylon(R) Replacement Program and discontinued
sales of products that contain Zylon(R). The amount of the third quarter charge
has not yet been finalized, but is not expected to exceed $60 million.»
And the Fool's analysis: Somewhat Less Than Bulletproof (http://www.marketwatch.com/enf/motleyfoolus.asp?siteid=mktw&guid=%7BEA51F1F0%2D94DB%2D4B39%2D807F%2DE6625ED339B2%7D&link=http://www.fool.com/News/mft/2005/mft05083022.htm)
Since the company is expected to take a big charge on the third quarter, perhaps the best time to buy will be when the news is out. I will take a daily look at DHB's chart, I guess this company will come out ahead of this over the long term and the present sell off may be a wonderfull buying opportunity. But I usually don't try to catch falling knifes, so I'll be looking for DHB to make some base and then reverse trend to buy.
Good luck :)
I want to thank all you guys who jumped in on this one while people like me stood on the sidelines. DHB looks like it will be a winner when the right entry point arrives.
Before I found 3SOF I had to buy 5 or ten shares of every stock that intrigued me, just so I'd be motivated to look at it more carefully...even without the winners DR and others have provided, this ability to look over the shoulders of other traders is worth its weight in BIDU certs.
I want to apologize to everybody (if any) who followed my recommendation on this stock. There is unfortunately not something like a sure wiinner and DHB was certainly not a winner.
I think that the correction is overdone and I am considering to add here. I am not usually averaging down (on the contrary I prefer to add shares when I already have a solid profit like AOB and VPHM!) but DHB is still a healthy company and the Zylon replacement is a once of event.
Now this is not a buy recommendation.
Shares Outstanding: 45.38M. So, if they take a 60mill hit, plus the 11 mill non cash expense for the issue of cheap options, in Q3, that is worth about 1.50 a share. The stock was a compelling buy at $4.50. But, I really disliked the way mgt treated outsider shareholders. and I still do. So I will stay out. If I make dollaros on BRVO, I might hold a few to buy back in if this baby goes into freefall again. Don.
Well I bought and sold this Morning. I am still down a bit but I am at least in a better mood ;D
I am still holding my initial position. This will remind me to never by shares in companies when I do not trust the management.
I still think the company is undervalued and will buy again if I get a second chance.
Michael
This will remind me to never by shares in companies when I do not trust the management.
I still think the company is undervalued and will buy again if I get a second chance.
Michael, I've been making mistakes in stocks for 30 years now. So i must be due a diploma in it!
Mind you, I have made one or two big wins which have put me ahead of all of the losers. Maybe that is being Irish.
My largest dollar loss was Dimethaid.
I said what you said This will remind me to never by shares in companies when I do not trust the management....and I did what you say you will do....I still think the company is undervalued and will buy again if I get a second chance. jmho, Don.
Don - Applauds to you!
You are absolutely right and you make me feel young ;D
I have only traded for 20 years and I still make the same mistake I did in the eighties.
To the younger members of this board you don't know how lucky you are. Imagine to invest without 3SOF or even Yahoo Message Board.
I still remember when you had to wait for the newspaper to see if you had made a good deal. I bought my first US stock in the nineties have followed all the improvements since then. I was one of the first members of the Motley Fools before they started to charge and I have posted some of the first messages on some of the blue chip Yahoo message boards.
Hmmmm.... I am getting nostalgic here and my wife want to go out and eat dinner!
Offline for tonight - but it is weekend so time for story telling tomorrow (that is if I don't have a hangover (http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=3312))
Well maybe there are still hope to close this position with a profit:
Quote$60 mln charge chinks body armor maker DHB
by Catherine Tymkiw
Shares of DHB Industries Inc. sank to a 52-week low after the maker of body armor said it would take a charge of up to $60 million to stop production of some bulletproof vests. An analyst said it could be a takeover target.
DHB said today that it stopped production of a line of vests containing Zylon, a material intended to stop bullets, after the National Institute of Justice revoked certification of all vests containing the material because of safety concerns. DHB said it would help law enforcement agencies with replacement vests.
In the past I bought DHB at $9.35 and sold it for a 8% loss at $8.60. The stock looks attractive now at $4.06.
The company reported its 23rd consecutive quarterly revenue increase at the beginning of November: DHB Industries Announces Third Quarter Results (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=11189&guid=%7BA418378D%2D8903%2D4E28%2DAA77%2DE756214B2920%7D&symb=)
Yet, the stock is down from above $22 to below $3 in the last year.
Before you start thinking I'm going to make the mistake of an "inverted analysis" for a second time, let me present you the current short term chart for DHB,, where one can see the trend is turning from bearish to bullish:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=10357;image)
We have the ascending triangle breakout and yesterday a retest to the breakout zone. I'll use this pullback to get in today.
Also the stock closed above the 50 day tema indicator, something that didn't happen since July when the stock was trading around $8.
An important part of the fall was probably explained by this:
DHB Confirms Commitment to Officer Safety
DHB Discontinues Use of Zylon(R) in Bullet Resistant Products Announces Voluntary Replacement Program for Non-Compliant Vests Preliminarily Estimates a $60 Million Charge to Third Quarter 2005 Earnings (http://www.marketwatch.com/tools/quotes/newsarticle.asp?dist=¶m=archive&siteid=mktw&guid=%7B9BBA55E7%2D8235%2D4CB6%2D8714%2DA80352863E3E%7D)
After this a roll of investors groups filed suits against the company:
Press Releases about Dhb Inds Inc (DHB) (http://www.marketwatch.com/tools/quotes/news.asp?siteid=mktw&symb=dhb&property=sid&value=11189&doctype=2007)
What I find interesting in these lawsuits is this:
«The Complaint charges DHB and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning DHB's operations and prospects caused the Company's stock price to become artificially inflated, inflicting damages on investors. DHB is a holding company engaged in the manufacture and marketing of protective body armors. The Complaint alleges that defendants' Class Period representations were materially false and misleading when made for the following reasons: (1) DHB's body armor products were unsafe and defective; (2) the Company knew that DHB's body armor products were unsafe and defective, but continued to falsely represent that its body armor products were safe and of high quality; (3) defendants knew and/or recklessly disregarded that continued sales of its unsafe and defective body armor products could have a material adverse effect on DHB's finances; and (4) DHB lacked adequate internal controls and, as a result, was unable to determine the true financial impact of withdrawal of any of its products.
On August 30, 2005, DHB announced that it would take a third quarter charge of up to $60 million to discontinue production of certain bulletproof vests because of safety concerns. Following this announcement, on that same day, August 30, 2005, shares of DHB fell $1.56 per share, or 23.42 percent, to close at $5.10 per share on unusually heavy trading volume. »
They claim that management already knew bad things were to happen, and didn't inform the public. But, if management knew, they sold in advance and probably told many friends and close institutional investors to sell before the big news came out !
One could always have sold due to technical factors (like I did), much before the news was out. The trend was bearish for about 9 months before the news was published.
Now, the $60M charge was taken in the 3rd quarter, and the company continues to be alive and kicking, as you can read on the 3rd quarter results, growing sales, buying back shares and reducing debt a lot !
The latest news, DHB Industries Awarded $30.1 Million Order From U.S. Army (http://www.marketwatch.com/tools/quotes/newsarticle.asp?dist=¶m=archive&siteid=mktw&guid=%7BA41C4706%2D7382%2D4D37%2D84F1%2D407B865FE685%7D), tells me that the company's credibility wasn't so damaged as people are painting.
Anyway, learning from past mistakes, I'll believe only for as long as the market believes.
I'll buy DHB around today's open for the 3 Stocks on Fire Portfolio (6.66% of capital as always) and will hold for as long as the trend remains bullish (for today I'll hold, I never consider selling in the same day I buy). I would like DHB to be a long term holding of the 3 Stocks on Fire Portfolio, I'll continue studying the fundamentals and technicals of the company.
Maybe this buy back will bring Michael's attention, I miss his brilliant analysis :)
Hi, I am a newbie here....just wanted to know what you think of the effects of this
http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh30298_2005-11-17_23-46-59_n17525042_newsml
Quote from: iet on November 29, 2005, 02:03:43 PM
Hi, I am a newbie here....just wanted to know what you think of the effects of this
http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh30298_2005-11-17_23-46-59_n17525042_newsml
Hello iet, you're welcome :)
That's old news. That's a part of the reason why the stock came down from $22 to below $3, and the company already took a $60M charge in the 3rd quarter related to this issue (http://www.marketwatch.com/tools/quotes/newsarticle.asp?dist=¶m=archive&siteid=mktw&guid=%7BA418378D%2D8903%2D4E28%2DAA77%2DE756214B2920%7D). But confidence in the company's products probably wasn't damaged, since a couple of weeks ago the US Army ordered $30.1M in new orders from DHB (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=11189&guid=%7BA41C4706%2D7382%2D4D37%2D84F1%2D407B865FE685%7D&symb=).
The company voluntarily discontinued the use of Zylon in its bullet resistance products (http://www.marketwatch.com/tools/quotes/newsarticle.asp?dist=¶m=archive&siteid=mktw&guid=%7B9BBA55E7%2D8235%2D4CB6%2D8714%2DA80352863E3E%7D), so, the product had some problems, but the company solved those products. Probably in the future, say 2 years time, everything will go back to normal and the stock price will increase immensely. At least, that's my expectation at this moment.
Now, volume yesterday was above average and the stock rose 2.71%, closing for the 3rd consecutive time above $4, which was a resistance level. It was also the 3rd consecutive close above the long term triple exponential moving average (tema).
Everything is set for a powerful advance, maybe as soon as today. I still don't know if I should use the tema indicator or the ascending trendline as downside protection, for now I'll just keep on holding.
I have had DHB on my watch list for a while, if I buy I'd be watching for failure at the $5 zone in this descending channel. Nice upside potential though if it can get through.
Prgx 8-K is out any advice? buy or sell after hours?
Thanks!
Show all filings for PRG SCHULTZ INTERNATIONAL INC | Request a Trial to NEW EDGAR Online Pro
Form 8-K for PRG SCHULTZ INTERNATIONAL INC
--------------------------------------------------------------------------------
30-Nov-2005
Entry into Material Agreement, Material Modifications, Financial St
ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
In order to provide Blum Capital Partners, L.P. and its affiliates with the ability to increase their ownership of the registrant's outstanding 4 3/4% Convertible Subordinated Notes due 2006 without their violating the provisions of their Standstill Agreement with the registrant or becoming an "Acquiring Person" under the registrant's Shareholder Protection Rights Agreement, and as otherwise described below, on November 23, 2005, effective November 14, 2005, the registrant amended the Standstill Agreement, and on November 24, 2005, effective November 14, 2005, the registrant amended the Rights Agreement.
STANDSTILL AGREEMENT
1. The definition of "Voting Stock" contained in Section 1 of the Standstill Agreement has been amended to exclude the Convertible Notes.
2. The registrant's requirement to amend the Rights Plan contained in Section 2 of the Standstill Agreement has been revised to reflect the amendments described below as well as a previous amendment to the Rights Agreement providing that members of the ad hoc committee of the Convertible Noteholders would not be deemed to be Acquiring Persons under the Rights Agreement solely due to their membership on the committee. (See the registrant's Report on Form 8-K filed with the Securities and Exchange Commission on November 14, 2005).
3. The prohibitions on purchasing Voting Stock of the registrant contained in
Section 5 of the Standstill Agreement have been amended to exclude any shares acquired upon conversion of Convertible Notes.
4. The provisions of Section 7 of the Standstill Agreement, providing for suspension of the standstill provisions of Section 5, have been amended to add two new suspension events:
a. the public announcement by the registrant that it has accepted an offer from any party, other than one accepted and endorsed by the ad hoc committee of the holders of the registrant's Convertible Notes, for any business combination, sale or similar extraordinary transaction involving the registrant or all or substantially all of its assets; and
b. the filing by the registrant, or commencement against the registrant, of any petition for relief under Title 11 of the United States Code.
5. Section 8, regarding confidentiality, has been deleted. Blum Capital Partners, L.P. and its affiliates have agreed to be bound by the same confidentiality terms as all other members of the ad hoc committee.
RIGHTS AGREEMENT
Section 1.1 of the Rights Agreement has been revised to exclude any Convertible Notes (or shares acquired upon conversion thereof) acquired after the date of the amendment from the beneficial ownership of Blum Capital Partners, L.P. and its affiliates in determining whether or not they are an "Acquiring Person" under the Rights Agreement.
See Exhibits 4.1 and 99.1 hereto, the contents of which are incorporated by reference herein. The Rights Agent, Wachovia Bank, National Association, also serves as the Transfer Agent for the registrant's Common Stock. Blum Capital Partners, L.P. and certain of its affiliates are holders of the registrant's common stock and Convertible Notes, and they have the right to designate a member of the registrant's Board of Directors and to have an observer present at all Board meetings.
ITEM 3.03 MATERIAL MODIFICATION TO RIGHTS OF SECURITY HOLDERS.
Please see the disclosure set forth under Item 1.01, which is incorporated by reference into this Item 3.03.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial Statements.
(b) Pro Forma Financial Information.
(c) Exhibits.
Exhibit Number Description
-------------- -----------
4.1 Fourth amendment to Shareholder Protection Rights
Agreement, dated as of November 14, 2005, between
Registrant and Rights Agent, entered into on
November 24, 2005.
99.1 Amended and Restated Standstill Agreement, dated
as of November 14, 2005, between Registrant and
Blum Capital Partners, L.P. and certain of its
affiliates, entered into on November 23, 2005.
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Well cc1120, unfortunately this isn't the right place to make those questions and I don't have time now to analyze that stock that I didn't knew. You can place those questions on the Members Corner, some people there would be glad to help you and I'm organizing myself to have some time to answer questions there too.
But I see the stock was up 4% on after hours, and judging by the chart, you have a nice profit, so I know you're well :)
QuoteEverything is set for a powerful advance, maybe as soon as today. I still don't know if I should use the tema indicator or the ascending trendline as downside protection, for now I'll just keep on holding.
Well, the powerful advance didn't take place yesterday, the stock rose just 0.24%. Maybe today? ;D
I really don't know, I took my position with a plausible rationale, now I have to manage it. If it shows a profit, I'll probably continue holding, if it shows a loss, I was wrong, at least in my time frame, and I'll dump it.
So, at this moment, I can't risk more than a close below the $4 support level. If DHB is set to close below $4 I'll sell it. If not, I'll continue holding.
We've had some news at DHB, the company hired a new COO: DHB Announces New COO, Rick Hockensmith (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=11189&guid=%7B7F427EF5%2DEF33%2D4619%2DAAC1%2D8791AEE94784%7D&symb=)
DHB was worth $1B a year ago. Now it's worth $193M. It's the same company, with the same rate of growth in revenues and profits. But some of its products had a problem, and the company took a $60M charge in the 3rd quarter.
A $60M charge apparently took $800M of the market cap of the company (of course, probably the company was overvalued when it was trading at $22, last December). But now it is undervalued.
I'll continue with my plan of holding, unless it is set to close below $4.
DHB doesn't need news like this!
http://www.gnn.tv/articles/1915/50_Cent_the_War_Profiteer_and_the_10_million_Bat_Mitzvah
http://tabloidbaby.blogspot.com/2005/11/exclusive-photos-mitzvahpalooza.html
Still in but wary...
That's an outrageous story boatguy, but the stock price is now higher than when it was published, so ... the fact remains that, although the CEO of the company is allegedly a bastard, the company is undervalued at this point.
Will 2006 be better than 2005? Probably. If 2006 were to be as good as 2004 the company would have an earnings multiple of 5.
Thanks for the information boatguy, I'll keep the trading plan.
If their product is bad why would the army make a 30 million dollar order with the company? Thats all I have to input.
Hi David,
This is a love hate relationship. I love that you finally hold a share that I am also holding. I hate that it is DHB!
Yes DHB is way, way, way undervalued but this is not a normal company - this is Mr. Brooks private check account.
Let me present Mr. Brooks:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=10869;image)
and his daughter. Ms. Liza Brooks:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=10870;image)
Having in mind that DHB is struggling you would probably be surprised that Mr. Brooks decided to fly in some of the biggest star in DHB private plane to his daughters party. And we are not talking about the local Elvis impressionist but Aerosmith, 50 Cent, Tom Petty, and Stevie Nicks, and more.
Well you shouldn't be surprised because you paid. Not you personally but all the small shareholders of DHB who thought that they had found a gem just to find out that it was a rotten tomato.
I have a very cynical relationship with DHB. I believe that Mr. Brooks will support the shareholders for a little time simply because his options, warrants etc. also is undervalued but DHB for me is the worst investment that you can find. It will probably go up with 20% or 30% but any long term holder will finance his daughters next big party. (be aware it might be her marriage and these things doesn't come cheap – at least not if you are Mr. Brooks!)
Mike
We all know market is controlled by sharks, MM and the unsuspecting public ::)...
the low of $2.76 is pretty much set...
the next resistance/support seems to be around $4.95 then up to $7.
If the MMs want to end the year with a bang this would be a great stock to do it with, before Spitzer, SEC or others call in the swat team. :-\
The are 45M shares outstanding and Shares Short of 3,445,555 that's almost 8%. :o Perhaps a squeeze could juice this stock for 1 or 2 points... Anyway being in at $4 and looking to get out at 7 is pretty good work for a month, with a stock run by a lowlife. >:(
To bad Kiss wasn't there I might have wished I was invited >:D LOL
I'm surprised to see so much love for this stock. I is a pariah.
Labor problems, faulty product - that is sent to our boys and girls in Iraq - and police officers!
Anyone who orders their porous armour must be crazy! On that note, I bet a big order from the US military will follow.
The press hates this stock and I can't see any analysts jumping on board.
Be very careful. There is so much better stuff out there.
Quote from: snowcat on December 04, 2005, 11:39:15 PM
The press hates this stock and I can't see any analysts jumping on board.
If you're a contrarian then now is the time to own this stock - when everyone else can't stand it. ;)
Quote from: basonista on December 05, 2005, 06:36:09 AM
Quote from: snowcat on December 04, 2005, 11:39:15 PM
The press hates this stock and I can't see any analysts jumping on board.
If you're a contrarian then now is the time to own this stock - when everyone else can't stand it. ;)
I agree with basonista, if the press hates it you should probably love it, because it is seriously undervalued.
I bought the stock, now I have to manage my position. About 2 or 3 updates before I had this doubt:
QuoteI still don't know if I should use the tema indicator or the ascending trendline as downside protection, for now I'll just keep on holding.
Now I know the ascending trendline won't be usefull, because the price run too far away from it. Perhaps the tema indicator, today at $4.05, will do fine. For now I'll stick by it, so the plan is «hold for as long as it is set to close above the tema indicator».
Keep on holding... we might see $6.40 on this one.. maybe, maybe ;D
A while back on this thread Aussietrader talked about $5 as a resistance level for DHB, remember?
Here's Aussie's post: DHB's descending channel (http://www.3stocksonfire.org/trading/index.php?topic=937.msg35657#msg35657)
On my chart the descending trendline stands at $5.50 for today, but coming down fast ($0.07 per trading day).
Considering boatguy's and Michael's posts about the CEO of this company, and also taking a look at the 3 Stocks on Fire open trades table, which shows a 15% profit in just 6 trading days, it's not hard figuring out what I will do:
Take profits.
I bought back in on the belief DHB is ready to continue on up! Will trend closely, but for now its broken above its downtrend line!
willey
Is this the coil pattern we have been waiting for?
DHB also looks to be nearing the entracnce of a 1.00 gap!
DHB broke out of a 5-week base at 1:25PM on the print of 5.04. This is the second upside breakout for DHB since early December. Target: 6.02-6.04 is IN PLAY.
DHB currently is BID 5.15...ASK..5.16
I'll post the daily chart next.
Daily Chart:
Quote from: Melf Elf on January 12, 2006, 01:51:23 PM
DHB broke out of a 5-week base at 1:25PM on the print of 5.04.
DHB pulled back to 5.08 after the breakout at 5.04, then finished at 5.24 on a volume spurt, near the high of the day (5.27). Good performance in a down market.
Daily Chart:
DHB - DHB Industries
3 million share buyback
http://biz.yahoo.com/ap/060124/dhb_...yback.html?.v=1
DHB Receives $14.4M Supply Contract
http://biz.yahoo.com/prnews/060125/nyw038.html?.v=42
Could see a decent run with this recent string of news.
Quote from: calven on January 25, 2006, 02:17:46 PM
Could see a decent run with this recent string of news.
cal,
The pattern breakouts should help, too. Today's rally gives us Bullish Breakout #4.
DHB currently is BID 5.08...ASK 5.09, up 5%
Repost from The Technical Analysis Board: The Wolfe Wave folder:
Metastock Explorer identified a Wolfe Wave in DHB.
I had a heck of a time seeing it, but I think I've found it.
The lead-in is awful skimpy. In fact, the entire pattern is pretty skimpy, but I like the fact that the low of the Wave 5 "fakeout" held above the trendline (solid green horizontal line) from the December 2, 2005 breakout.
DHB received a $54 million order from the Army on March 3 (story below). I'll repost this in the DHB folder on the Previous Stock Picks Board so we can keep track of individual stocks that we discuss.
Updated:2006-03-03 09:48:20
DHB Industries Gets $54 Million Army Pact
AP
WESTBURY, N.Y. (AP) - DHB Industries Inc., maker of body armor and athletic padding, on Friday said its subsidiary Point Blank Armor has received a $54 million order from the Army for its Interceptor protective vest.
The vest protects the torso and can be worn alongside other protective outerwear. On Feb. 22, the DHB received a $14 million order from the Army for its Deltoid Axillary Protection System, which provides protection for arm and shoulder areas not covered by the Interceptor vest.
Shares of DHB were up 25 cents, or 5.5 percent to $4.82 in morning trading on the American Stock Exchange. The stock has traded in a 52-week range of $2.76 to $12.85.
Good news ;D
Now DHBT after being delisted- up 12% to 1.54
On July 7, 2006, the Board of Directors of DHB Industries, Inc. (the "Company"), placed David Brooks, the Company's Chairman and Chief Executive Officer, on paid administrative leave for an indefinite period of time and pending the outcome of federal, state and internal investigations. Mr. Brooks remains a director.
http://biz.yahoo.com/e/060710/dhbt.pk8-k.html
The Rise and Fall of a War Profiteer:
http://www.alternet.org/module/printversion/38867
Traitors to their country and traitors to their shareholders - going DOWN ;D
Two former body armor company execs indicted for insider trading, fraud
http://www.trentonian.com/WebApp/appmanager/JRC/Daily?_nfpb=true&_pageLabel=pg_article&r21.pgpath=%2FTRN%2FHome&r21.content=%2FTRN%2FHome%2FTopStoryList_Story_795906
DHB living the high life!! ;D
'Flight Risk' and 'Dangerous' -- But Judge Loosens Bail For CEO
By Jonathan Dienst
http://www.wnbc.com/investigations/16634682/detail.html
NEW YORK -- Just days after a convicted CEO faked his own death and fled to avoid prison, a federal judge on Long Island reduced bail conditions for a separate CEO accused of a massive fraud even though prosecutors maintain he is a "flight risk" and "dangerous."
Judge Joanna Seybert reduced restrictive bail conditions for David Brooks, who ran DHB Industries -- a company that sold bulletproof vests to the military.
Brooks is accused of looting funds and committing securities fraud to the tune of hundreds of millions of dollars. Prosecutors said he then funneled his ill-gotten gains to accounts overseas.
Even though Seybert called Brooks a "danger to the community" because of past threats he allegedly made, she agreed to loosen his home confinement. Her new order allows Brooks to leave his Manhattan home unescorted between the hours of 9 a.m. and 10 p.m.
She said he can leave for medical visits, business meetings, religious services and meetings with his lawyers. Seybert said Brooks must still wear an ankle bracelet. Previously, Brooks was restricted to home confinement. Guards were ordered posted at his home 24 hours a day. He has pleaded not guilty and secured his $400 million bail with $48 million.
After holding a new round of hearings, the judge called Brooks a "minor flight risk." She added there remains a "risk of an obstruction of justice and danger to society." Seybert said under the law, she was required to impose the "least restrictive measures" to try to ensure Brooks will show up for court.
While Brooks did transfer cash to the United Kingdom, Senegal and Switzerland, the judge said she is satisfied with his explanations as to why so much money was sent overseas.
"Brooks disclosed his assets, presented he was renting rather than purchasing a home in England, transferred money in Switzerland back to the United States, and explained that the funds sent to Senegal were payment for certain religious services," she wrote. These new explanations convinced her Brooks is not significant flight risk as first believed, she wrote.
Seybert's ruling came after motions by Brooks' new lawyer seeking less restrictive bail conditions. That lawyer is former federal Judge Herbert J. Stern, who did not return a call for comment. A spokesman for U.S. Attorney Benton Campbell declined comment. A clerk for Seybert said she will not comment beyond her written ruling.
Brooks was arrested last October on charges he took part in an alleged "pump and dump" scheme. He made headlines in 2005 for the $10 million bat mitzvah he threw for his daughter at New York's Rainbow Room. Performers included the rock band Aerosmith as Brooks danced in a hot-pink outfit. In addition to allegedly reaping $200 million through illegal trades, investigators said Brooks spent company dollars on his personal horse racing business, luxury vacations and cosmetic surgery for relatives.
His reduced bail conditions come just days after convicted Bayou hedge fund CEO Samuel Israel fled. U.S. marshals said Israel faked his own death, pretending to jump off the Bear Mountain Bridge. Marshals and FBI agents are looking for Israel who is now believed to be on the run in an RV/motor-home type vehicle.
Federal Judge Colleen McMahon in White Plains had allowed Israel to turn himself in unescorted to the Federal Bureau of Prisons to begin serving his 20-year sentence. Israel never showed.
Other corporate fugitives from the New York area include Kobi Alexander, the former head of Comverse Technologies who fled to Namibia to avoid prosecution in his backdating of stock options case, prosecutors said. Also, the former head of Symbol Technologies, Tomo Razmilovic, fled to an oceanfront Villa in Sweden to avoid trial on charges he stole millions from his company.
As for Brooks, prosecutors asked that his bail conditions remain strict calling him a "flight risk" who has "the potential to obstruct justice and threaten witnesses."
The judge acknowledged Brooks has the means and sophistication to "relocate quickly to a foreign country." The judge also said Brooks had threatened former business associates. She even voiced suspicion that Brooks tried to hack into a computer more than 20 times in violation of his bail conditions. She said these examples show why Brooks can't be "unconditionally released."
Brooks must continue to pay for the costs of his electronic bracelet as well as for a security firm that will monitor his phone calls, the judge said. Under Seybert's order, Brooks can begin leaving his home starting Wednesday.