DHB

[Michael]

Well I bought and sold this Morning. I am still down a bit but I am at least in a better mood 

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

[don]

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.

[Michael]

Don - Applauds to you!

You are absolutely right and you make me feel young 

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 )

[Michael]

Well maybe there are still hope to close this position with a profit:

$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.

[David Randolph]

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

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:



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

After this a roll of investors groups filed suits against the company:

Press Releases about Dhb Inds Inc (DHB)

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, 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 

[iet]

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

[David Randolph]

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. 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.

The company voluntarily discontinued the use of Zylon in its bullet resistance products, 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.

[AussieTrader]

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.

[cc1120]

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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!

[David Randolph]

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 

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.

Well, the powerful advance didn't take place yesterday, the stock rose just 0.24%. Maybe today? 

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.

[David Randolph]

We've had some news at DHB, the company hired a new COO: DHB Announces New COO, Rick Hockensmith

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.

[boatguy]

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...

[David Randolph]

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.

[echo]

If their product is bad why would the army make a 30 million dollar order with the company? Thats all I have to input.

[Michael]

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:



and his daughter. Ms. Liza Brooks:



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