Want to point out a potential short-term buying opportunity this morning. Allied Research is a defense and security firm making ammunition (principal product) and security products including intrusion detection, access control and fire detection systems. It jumped from $9 to $19 after September 11th and now has fallen to about $13/share. The market cap is only $63 million, book value of $9.57/share and no debt.
It's first half earnings grew strongly and said that the second half would be strong (see press releases below). After 9/11 they announced two large ammunition orders totalling $49 million bringing backlog to $94 million. They announce earnings on 10/26, so I loaded up this morning's drop in anticipation of good earnings.
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Allied Research Corporation Reports Sharp Earnings Increase For Second Quarter and Six Months; Sees Strong Second Half
VIENNA, Va., July 31, 2001 (PRIMEZONE via COMTEX) -- Allied Research Corporation (AMEX: ALR chart, msgs), a diversified defense and commercial electronic security firm, said today that its second quarter net earnings from continuing operations jumped nearly 40%, with higher profit margins after absorbing the impact of exchange losses caused by the effect of a weak European currency. Six months profits were well ahead of 2000.
For the three months ended June 30, 2001, Allied Research earned $2.0 million from continuing operations, or $0.41 a share, fully diluted, on revenues of $25.8 million, compared to earnings of $1.4 million, or $0.30 a share, fully diluted, on revenues of $28.5 million for the same period in 2000.
For the six months ended June 30, 2001, Allied earned $3.2 million from continuing operations, or $0.65 a share, fully diluted, on revenues of $42.8 million, compared with earnings of $2.4 million, or $0.50 a share, fully diluted, on revenues of $52.0 million for the same period in 2000.
General J.H. Binford Peay III, Chairman and Chief Executive Officer of Allied Research, said that Mecar S.A., part of Allied's defense group, powered the revenue and earnings jump. The firm's electronic security unit, VSK Group, was on plan and ahead of the previous year's results, in spite of the weak Euro that depressed its revenues and profit picture.
"Mecar realized the effects of an aggressive marketing program, combined with its focus on generating higher margins for its proprietary product lines. Their outlook for the balance of the year is excellent. This growth, plus VSK Group's steady, predictable earnings contribution and headquarters push on management efficiencies, should result in an excellent year for Allied Research.
"We continue to be significantly undervalued by the market. Our revenues and earnings are strong; we have virtually no debt, an excellent cash flow and a program for internal and acquisition growth," General Peay said. "Our plan of growing a portfolio of strategy security businesses, both defense and commercial, domestic and international, is on track. This goal is attainable and will add to Allied's mass. We anticipate being able to announce one or possibly two domestic U.S. acquisitions before the end of the year," General Peay concluded.
Allied Research Corporation is a diversified defense and commercial electronic security firm, developing and producing conventional ammunition systems marketed to defense departments worldwide, and designing, producing and marketing sophisticated electronic security systems for European, Asian and African markets.
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Allied Research Corporation Names Charles A. Hasper Chief Financial Officer
VIENNA, Va., Aug. 2, 2001 (PRIMEZONE) -- Allied Research Corporation (AMEX:ALR - news), a diversified defense and electronic security firm, today named Chuck Hasper, age 46, as Chief Financial Officer. Mr. Hasper joins Allied Research from CK Capital Partners, an investment-banking firm, where he was a partner in the Washington, D.C. office.
The announcement was made by General (Ret.) J.H. Binford Peay III, Chairman and Chief Executive Officer. General Peay said that Mr. Hasper has a unique combination of domestic and international experience with both medium size and Fortune 500 firms.
``He has broad-based experience in both government and industry that will prove valuable as we expand our portfolio of strategic security businesses, both in defense and commercial markets. Mr. Hasper's experience in financial information systems, SEC requirements, corporate finance, and mergers and acquisition work will strengthen our drive to grow Allied Research prudently for the benefit of our shareholders,'' General Peay said.
``We are moving rapidly on a course to unlock the tremendous value of Allied Research for our shareholders, and Chuck is the perfect fit to make that happen,'' General Peay concluded.
Mr. Hasper is a Certified Public Accountant and holds an MBA in Finance from the University of Maryland.
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Allied Research Corporation Receives $32 Million in New Orders
Allied Research Corporation Receives $32 Million in New Orders;
Chairman Predicts Continued Strong Year; Backlog Now
Up to Approximately $77 Million
VIENNA, Virginia, Sept. 19, 2001 (PRIMEZONE) -- Allied Research Corporation (AMEX:ALR), a diversified defense and electronic security firm, said its defense unit, Mecar S.A. had received $32 million in new orders from several customers for production of medium caliber conventional ammunitions, ranging from 25mm to 90mm, as well as hand and rifle grenades. Delivery scheduled is within the next 12 months. These orders raised the consolidated corporate backlog to about $77 million.
Allied Research's Chairman and Chief Executive Officer, General (Ret.) J.H. Binford Peay III, said: "These orders continue to reinforce that 2001 is a strong year for the Company. We are ahead of 2000 and both our defense and commercial operating groups see strong second halves. These latest orders indicate that 2002 should be a solid year, as well. "
For the six months ended June 30, 2001, Allied earned $3.2 million from continuing operations, or $0.65 a share, fully diluted, on revenues of $42.8 million, compared with earnings of $2.4 million, or $0.50 a share, fully diluted, on revenues of $52.0 million for the same period in 2000.
General Peay continued, "There are indications that investors are beginning to take notice of our new strengths. Our backlog is solid, and stronger margins are providing us with improved earnings. This upward trend is encouraging to investors. We look forward to building on this momentum and increasing shareholder value." |
