3SOF

i love these small increments up everyday, i like this steady movement up much rather then crazy movement with crazy volume, i think we are setting up very nicely this stocks after a bouncy transition to the nasdaq is finally looking very nice, holding a good portion and not selling for less then 30 which i think we will get there by the end of this year

Force Protection (FRPT - Cramer's Take - Stockpickr - Rating) has been upgraded to a hold from a sell. The company makes blast-protected vehicles that have been used to support U.S. military forces in Iraq, Afghanistan and other locations around the globe. Force Protection's revenues jumped 287.3% in the fourth quarter of fiscal 2006 compared with the same quarter a year earlier.
This growth appears to have trickled down to the bottom line. The company earned 32 cents per share in this latest quarter after losing 23 cents per share in the third quarter of fiscal 2005. FRPT had been rated a sell since January 2007.

Another Reversal.

Market Edge - Second Opinion

Opinion NEUTRAL FROM AVOID 

Report Date: 04/16/07

Recommendation

Stock shows Strongly Improving Conditions. SCORE = 4
If you are Short this stock, consider covering or monitor stock closely.
Stock is an Early Entry Buy Candidate if stock closes above 18.14

Comments

Moving Average Convergence/Divergence (MACD) indicates a Bullish Trend.

Chart pattern indicates a Possible Trend Reversal.

Relative Strength is Bullish.

Up/Down volume pattern indicates that the stock is under Accumulation.

The 50 day Moving Average is rising which is Bullish.

The 200 day Moving Average is rising which is Bullish.

Look for Support at 17.89

Stochastics indicate stock is Overbought.




Was the advice: Market Edge - Second Opinion: Not a short candidate. If you are long, keep. But do not add any new positions.

As of 3/5/2007: Market Edge - Second Opinion: Avoid the stock. Stock is Not a Short Sale Candidate. If you are long, close position or monitor stock closely.

Comment:

Moving Average Convergence/Divergence (MACD) indicates a Bearish Trend.

Chart pattern indicates a Weak Downward Trend.

Relative Strength is Neutral.

Up/Down volume pattern indicates that the stock is under Distribution.

The 50 day Moving Average is falling which is Bearish.

The 200 day Moving Average is rising which is Bullish.

 
British Buying Additional Armored Vehicles from Force Protection
(2007-03-14)
By: Copyright Business Wire 2007 , Business Wire
Force Protection, Inc. (NASDAQ:FRPT) today announced that it recently received a contract modification from the British Ministry of Defence for 22 additional Cougar Mastiff Protected Patrol Vehicles (Mastiff PPV). The order will bring the total number of vehicles produced for the British government to 108 at an approximate value of $70.1 million.

Under the contract awarded in August 2006, Force Protection expects to deliver the vehicles by the end of June 2007.

"Force Protection has worked hard to get its lifesaving armored vehicles to U.S. armed forces and their allies throughout the world," said Force Protection CEO Gordon McGilton. "We are gratified by this contract modification which is indicative of the vital role these vehicles play in increasing troop safety, and are pleased to provide these vehicles to the British military."

The Mastiff PPV is based on Force Protection's Cougar Explosive Ordnance Disposal (EOD) vehicle, which has been deployed with combat engineers and first response teams in Iraq and Afghanistan for more than three years. The first deliveries of the Mastiff PPV were shipped ahead of schedule in November 2006.

http://www.epicos.com/epicos/portal/media-type/html/user/anon/page/default.psml/js_panename/News+Information+Article+View;jsessionid=0209115D3DB2BDCB4C9B9E8A1F080CD7.tomcat6?articleid=74237&showfull=false

One more analyst coverage.

http://www.bloggingstocks.com/2007/04/17/analyst-initiations-4-17-07-cc-dhi-and-grmn-initiated-today/

Thomas Weisel started Force Protection Inc (NASDAQ: FRPT) with an Overweight rating, as the firm believes the mine-resistant vehicle market is real and has staying power.

Found the reports for the new anaylyst coverage.

See Attachments

Force Protection Gets $481.3M Navy Deal
Monday April 23, 6:53 pm ET
Force Protection Gets $481.3 Million Deal to Deliver MRAP Vehicles to Iraq

WASHINGTON (AP) -- The U.S. Navy on Monday awarded a $481.4 million delivery order to Force Protection Industries Inc. to provide an additional 1,000 Mine Resistant Ambush Protected Vehicles.

MRAP vehicles protect U.S. soldiers from mines, rocket-propelled grenades and improvised explosive devises and are currently used in operations in Iraq. A joint military program led by the U.S. Marine Corps is seeking to double the size of its new armored vehicle program to meet short-term combat needs. The Marines and Army want to buy 7,774 MRAP vehicles expected to cost $8.4 million.

Under the contract, the government will buy 300 category I vehicles and 700 category II vehicles. Work will be performed in Ladson, S.C. through May 2008.
Shares of Force Protection rose $2.50, or 11.3 percent, to $24.65 in aftermarket trading, after rising 97 cents, or 4.6 percent, to close at $22.15 on the Nasdaq Stock Market.

More budgeted funds shifted to MRAP. Looks like FRPT's production ramp schedule is full steam ahead. Next stop 200 vehicles per month.


Was the budget:

"With five vendors, 38% (399 of 1049) of the 2007 budget contracted for the next three months. That leaves 52% or 650 vehicles remaining to be contracted for the four final months of this fiscal year. Leaving the 2008 fiscal budget, which must still come by October. It's a long shadow but it may work yet."

TerryG

AH 25$

haha yessssss we got themmmmmmm gap up tomorrow, man wait till we get orders for the cheetah, this is amazing buyout no buyout this is 40 dollars stock and thats a conservative pps!

Force Protection "buy," target price raised

Tuesday, April 24, 2007 2:18:04 PM ET
Dougherty & Company
NEW YORK, April 24 (newratings.com) - Analysts at Dougherty & Company reiterate their "buy" rating on Force Protection Inc (ticker: FRPT). The target price has been raised from $23 to $29.

&

FRPT: Short Interest DN 3.4% to 9.1M in Apr 2007
Tuesday , April 24, 2007 16:17ET

According to new short interest data from NASDAQ, short interest for Force Protection, Inc (NasdaqSC: FRPT) DECREASED 3.4% to 9,055,524 shares for the month ended mid-April, 2007.

SYMBOL        MARCH           APRIL          CHANGE       %CHANGE  DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
FRPT           9,378,900       9,055,524        -323,376        -3.45%          10

Based on FRPT's 20-day average daily share volume of 945,485, it would require approximately 10 day(s) of buying to cover this short interest.

Two double edge swords of good news or bad news.

First the Q1 report in May and now June. In June they expect to complete testing of the other vendor's vehicles and issue additional MRAP contracts. Also known as the contract split that will translate to FRPTs final price.

More US Marine Corp vehicle contracts seen in June

Tue Apr 24, 2007 7:06 PM ET
By Andrea Shalal-Esa

WASHINGTON, April 24 (Reuters) - The U.S. Navy said on Tuesday it expects to award contracts for thousands of additional armored Mine Resistant Ambush Protected (MRAP) vehicles in June after completing tests on seven more models.
Lawmakers have been clamoring for more MRAP vehicles to be delivered to Iraq to protect U.S. soldiers from mines and improvised explosive devices.

The Marine Corps, whose acquisitions are overseen by the Navy, awarded a $481 million contract on Monday for 1,000 MRAP vehicles to Force Protection Inc.<FRPT.O>, which has formed a joint venture with General Dynamics Corp. <GD.N>, to produce the vehicles even faster.

Buoyed by the news, Force Protection shares rose over eight percent to close at $23.97 on the Nasdaq on Tuesday.

On Tuesday, Navy acquisition chief Delores Etter told a congressional hearing that Force Protection finished its tests first, which allowed it to grab the first big contract since the program had been structured as "first come, first served."
But she said U.S. Army personnel were working three shifts six days a week testing the remaining seven vehicles and those tests should be completed by the end of May, paving the way for additional contracts "shortly thereafter."
Lt. Gen. Emerson Gardner, deputy commandant of the Marine Corps, said the program to design, develop and produce vehicles that could survive mines and improvised explosive devices (IED) in Iraq and Afghanistan, was a "success story."

He said Congress had included $3 billion for the vehicles in the latest emergency spending bill, but an additional $4.8 billion would be needed in fiscal 2008 to pay for all 7,700 vehicles the U.S. military wants to buy.

Gardner told the defense subcommittee of the House Appropriations Committee that the first 10 of 630 vehicles ordered in November 2006 had already been delivered and by fall, deliveries would increase to hundreds per month.
The vehicles offer a V-shaped hull and raised chassis, helping deflect the impact of any roadside bombs.

Gardner said the program was first born of a joint urgent needs statement from the military command that oversees operations in Iraq and Afghanistan, but demand was increasing rapidly in the wake of worsening IED attacks.
Etter told the committee: "We are using every acquisition streamlining action possible, employing unique and flexible contracting methods and tailoring testing and evaluation to focus on the most critical operational requirements."
Other vehicle makers, including BAE Systems Plc <BA.L> Oshkosh Truck Corp.<OSK.N>, General Dynamics-Canada and Textron Inc. <TXT.N> have been asked to deliver MRAP test vehicles.

Etter said eight companies had delivered vehicles for testing, while one company opted out. She did not identify the companies.
________________________________________
© Reuters 2007. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

 Big New Order Tests Force Protection Plan To Outsource Mfg

Apr 25, 2007 18:57:03 (ET)

WASHINGTON (Dow Jones)--Force Protection Inc.'s (FRPT) plan to outsource its way to manufacturing success faces a big test over the next year, thanks to a $481 million, 1,000-vehicle order this week from the U.S. military.

Force Protection won the first major production contract in the Mine-Resistant, Ambush-Protected vehicle program, a new $8.4 billion program that aims to buy more than 7,700 new MRAP vehicles for the U.S. Marine Corps, the U.S. Army and other ground forces.

It will be a huge challenge for the South Carolina-based company. Force Protection built just 300 vehicles in all of 2006 and historically has struggled to add capacity. To succeed, the company will have to integrate a broad new team of suppliers and partners into its production lines for Cougar and Buffalo vehicles.

Analysts said the company has a tough road ahead. Delays and cost overruns are common in programs this ambitious, said Lexington Institute defense analyst Loren Thompson.

"The record of fast reaction production for forces in Iraq is spotty at best, in terms of industrial capability," Thompson said. "There are going to be some manufacturing issues that people haven't anticipated."

Force Protection's team includes major defense contractors such as General Dynamics Corp. (GD) and Armor Holdings Inc. (AH). As these partners begin operations, Force Protection plans to expand from its current production rate of 70 to 80 vehicles per month to 200 vehicles per month, over a six-month span.

"It's kind of like a relay race, where we start running a while in anticipation that the baton is going to come to us," said Mike Aldrich, Force Protection's vice president for marketing and government relations, in a Wednesday telephone interview. He said Force Protection's partners will bring key support not only for manufacturing, but also for setting up the extensive logistics chain that these vehicles will require once they are deployed.

Force Protection's new vehicles will be built in Michigan, North Carolina, Texas and Ohio, as well as in South Carolina. The new contract calls for all vehicles to be delivered by May 2008.

If Force Protection wins more big orders, it could expand its supplier team further. "Frankly, we could add others, like BAE Systems, to increase the production flow if we were asked to. We'll give the design to anybody to try to get the vehicles out the door," Aldrich said.

BAE Systems has worked with Force Protection in the past, on light armored vehicles for the Iraqi government. But the two companies have not yet announced any new alliances.

Force Protection is one of nine companies that the Marines selected in February for MRAP testing. General Dynamics and Armor Holdings also made the list, along with Textron Inc. (TXT), BAE Systems PLC (BA.LN), Oshkosh Truck Corp. (OSK), Protected Vehicles Inc., Navistar International Corp.'s (NAVZ) International Military and Government LLC, and General Purpose Vehicles LLC.

Each company is on contract for four test vehicles - two "category one" and two "category two" vehicles. Seven companies have delivered test vehicles so far, the Marines said.

Force Protection is the only company to complete testing so far, the Marines said. But because the military has such an urgent demand for the new vehicles, the Marines already placed interim orders for 639 vehicles with five of the selected companies.

The Marines said they do not have a uniform plan for how the MRAP program will take shape as testing proceeds. "Each company is different," said Marine Corps Systems Command spokesman Bill Johnson-Miles.

Despite the big challenge of filling the MRAP order, Force Protection hasn't shied away from other new business prospects. The company is mulling a new manufacturing location in the Southeastern U.S. for its proposed Cheetah commercial armored vehicle.

The company also has proposed an upgrade to the 600 or so Buffalo and Cougar vehicles it has delivered to the U.S. military so far. This upgrade, which would cost $100,000 to $200,000 per vehicle, would provide better protection against a particularly deadly type of roadside bomb, Aldrich said. If the military accepts the proposal, the upgrade also could be adapted for the General Dynamics-made Bradley Fighting Vehicles and other U.S. military equipment, he said.

Something to watch for in June.

That is unlikely given the amount of partisan bickering that has transpired during the past several weeks. If the president follows through on his pledge to veto the bill because of provisions that call for the withdraw of troops from Iraq, another could be passed by June 1, Reid said.

This does work in FRPT's favor in the short term. But it does place a real squeeze at the DoD for currently budgeted funds. When FRPT won that 1000 vehicle contract that took all the previously allocated funds for 650 vehicles plus a like amount of unalloocated funds for 350 vehicles. Which I believe depletes the unallocated funds they found in the budget so far. Re-adjusting line items of budgeted funds for Iraq because the Emergency Supplemental budget is delayed, may leave MRAP a loser until the Emergency Supplemental 2007 budget passes. With the budget delayed they will have to change the currently budgeted funds to pay for Iraq before considering more MRAP funds.

Meaning the squeeze on the other vendors in June. There may not be funds for additional contracts in June like DoD wants. FRPT has a 152M cash pool to complete its production ramp. The other vendors will have to complete their production ramp plans without DoD contracts up front. And all contracts FRPT has had they are paid upon delivery of vehicles with no money up front from DoD. Meaning other qualified vendors may opt out rather than pursue MRAP with their own funds like FRPT has.

FRPT will be in a position to fill additional contracts at increased production capacity, with other vendors stuck with the LRIP contracts they already have.

Congressional support and funding has been the change of fortune for FRPT ever since their stock was 21 cents.



defense daily
27 april 07

Senate Passes Supplemental, Adding Funds For Five C-130J Aircraft
By Jen DiMascio

The Senate yesterday voted 51-46 to pass a supplemental spending bill that would provide $95.5 billion for the Defense Department's operations in Iraq and Afghanistan-- including additional funding to purchase five C-130J aircraft.
"We ask the president to read and to sign this bill," Senate Majority Leader Harry Reid told reporters yesterday.

That is unlikely given the amount of partisan bickering that has transpired during the past several weeks. If the president follows through on his pledge to veto the bill because of provisions that call for the withdraw of troops from Iraq, another could be passed by June 1, Reid said.

House Appropriations defense subcommittee Chairman John Murtha told reporters yesterday that he is considering two possible paths forward--one that would cover expenses through the end of the fiscal year and one that would last two months and require a revisit.

Murtha added that two defense spending bills for FY '08 may be considered separately.

The Defense Department in February submitted requests for $481.4 billion for FY '08 and an additional request for $141.7 billion in supplemental war funding for the fiscal year (Defense Daily, Feb. 6).

According to a congressional aide, the timeline for FY '08 spending bills could work something like this: The House would mark up the FY '08 defense appropriations bill in June but not mark up its accompanying supplemental until September or October, when lawmakers could make a better assessment of what the Pentagon needs. It is typical that the base budget bill would be returning to the House for a vote on its conference report at that time, so both bills could be joined together, the aide said.

The eventual FY '07 supplemental spending bill was wide-ranging, including money for hurricane relief, education and homeland security.

In terms of money for Defense Department procurement, the conference report arrived at $25.6 billion, close to a midpoint between the House and Senate versions.

According to the conference report, conferees added five C-130J aircraft to replace combat losses, even though the Pentagon did not request funding. The bill also provides funding for one CV-22 Osprey. House and Senate versions of the bill both pledged to increase funding for the Mine Resistant Ambush Protected Vehicle by $1.2 billion, lifting the total to about $3 billion, according to the appropriations committees.

The Senate's request for nine UH-60 Black Hawk helicopters stood, as did its request for four CH-47 Chinooks.  The bill being sent to President Bush supports the House bill's allotment of $178.5 million to buy three F/A-18 E/F Super Hornets.  Regarding the Family of Medium Tactical Vehicles, the conference report pledges to provide $1.5 billion, splitting the difference between previous bills.

According to the conference report, the conferees cut funding requested by the president by $75 million for Single Channel Ground and Airborne Radio Systems, citing concerns about industrial capacity.

Conferees are also mandating that the Army submit a report on the service's strategy for leveraging industrial capacity and an evaluation of off-the-shelf needs before it can receive $175 million of the $459 million provided by the bill.  The conference report said it fully resources a fund for the Joint Improvised Explosive Device Defeat Organization.

The conferees did not restore the president's request for F-35 Joint Strike Fighters, which the Pentagon pulled from its request and did not appear in either the House or Senate versions of the bill.

Here is the background story on why June and July are going to be critical budget problems because of the delayed supplemental budget. It is a rerun of last year.



Army could cover costs until June, CRS says

Aerospace Daily & Defense Report

04/25/2007, page 23
Michael Fabey

The U.S. Army could fund its operational needs until June or even July by shifting funds from other sources, according to a recent report by the Congressional Research Service.

"CRS estimates that the Army could cover its operational costs until about June or July 2007 by using war funds in the FY2007 'bridge' fund provided in Title IX of the FY2007 appropriations bill, by temporarily transferring procurement funds to operations, and by tapping monies in its baseline budget that would not be needed until the end of the fiscal year," the government research group said in its March 28 report, "FY2007 Supplemental Appropriations for Defense, Foreign Affairs, and Other Purposes."

The Army still would have some challenges, CRS reports. "This does not mean, however, that the Army would not face disruptions if funding is delayed," the report said.

"In order to ensure that funding is available for the later months of the year, the Army may very well decide that it must slow down its operations before money would run out by, for example, limiting facility maintenance and repairs, slowing equipment overhauls, limiting travel and meetings, and, perhaps, slowing down training."

The Army has been warning of a fund crunch, CRS pointed out.

Burn rate
"The Army estimates that it is now spending operation and maintenance (O&M) funds at a rate of about $6.3 billion per month both for combat and for everyday operation of the force. To date, Congress has appropriated a total of $52.6 billion for Army O&M in FY2007, of which $24.2 billion was provided in the FY2007 base budget and $28.4 billion was provided in the FY2007 'bridge' fund for war costs. At an overall combat and noncombat 'burn rate' of $6.3 billion per month, the Army has enough money, therefore, to operate at the current pace for just over eight months - that is, though the end of May and into June."

Last year, when the supplemental was not passed until June and when there was less money in the bridge fund, Army officials say that restrictions on operations were quite damaging, the CRS reported. "This year, they say, they are especially pressed because they do not want to delay programs to absorb additional personnel into the force."

The effect of a delay in passing the supplemental has now become a major issue.

For example, CRS cited a report that Secretary of Defense Robert Gates told members of Congress in a March 22 meeting that the Army would have to slow training beginning in mid-April, and that delays beyond the middle of May might lead the Army to extend the deployment term of units already in Iraq rather than send new units without full training.

- Michael Fabey ([email protected])