ARTX

[eliteG]

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..  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:



Short-term Chart:




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.

[la-onda]

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.

[SmartWrasse]

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 .

[DannyOhad]

EliteG,

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

Thanks,
Ohad

[eliteG]

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.

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. 

[Leaira]

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!   

Leaira

[vista1]

I got in at .44 this morning. 

[Athakinu]

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

[eliteG]

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.

[yukiii]

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

[Athakinu]

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...

[sbippy]

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?

[eliteG]

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.

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

[bmarc4211]

Elite One,

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

[eliteG]

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 .. 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.

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