A couple things... The press release seems to be getting the stock back in play. Force Protection, Inc. Commemorates 9/11, Announces Vehicle Deployment During 'South Carolina Strikes Back' Ceremony
Wednesday September 22, 10:49 am ET
LADSON, S.C.--(BUSINESS WIRE)--Sept. 22, 2004--Force Protection, Inc. (OTCBB:FRCP - News) announced the official delivery of a series of its top-rated mine and blast protected vehicles to the US Army and the US Marine Corps during its "South Carolina Strikes Back" ceremony on September 10 at its corporate headquarters.
South Carolina Congressmen Henry Brown and Jim DeMint spoke at the event, lauding Force Protection's vehicles, the Cougar and Buffalo, which protect American troops against landmines, Improvised Explosive Devices, small arms fire and air bursts.
"The Cougar and the Buffalo mean to our troops what the bullet proof vest means to our policemen here in America," said Brown. In comparing them to other vehicles currently used by the military, DeMint described Force Protection's vehicles as "a better idea, a better product that met in this case a national security need."
Force Protection CEO Michael Watts emceed the event and outlined the company's recent growth.
"We are delighted to announce today that 14 of Force Protection's Cougar vehicles will be deployed by Christmas to the Marines in Iraq, with an additional 13 Cougars slated for deployment in the first fiscal quarter of 2005," Watts said. "We have also received confirmation that the Army has made a new request for 15 Buffalo vehicles. All of this is indicative that these vehicles meet the critical need of protecting our troops and saving lives, and we are honored to support them in their mission."
biz.yahoo.com
I had started a thread after yours, here on SI. Sorry, wasn't aware that this one existed.... Subject 53409
And take a look at this from the link..
Tim, Me again. I want to toss some numbers around with what I see as a worst case scenario. By Jan 1st 05 there should be 14 assembly lines up and running. It's my impression that 2 a month will be added into next year. Each line 2 vehicles / month. Lets go with 14 lines. When I asked Watts about future contracts he obviously couldn't disclose discussions FRCP is having with the government. He replied: "Let's say there's a lot of activity." I can not imagine FRCP is adding lines without future contracts in the picture. 2 vehicles/month/line/yr is 336 vehicles for 2005 worst case IMO. Buffalos over $600k and Cougars over $300k. Lions expected to be a small business. I asked if I wanted one. He said about $225k. It's a vehicle one may expect a celebrity or executive to own. Not me, I was only curious as it looked street legal.
Back to numbers. Let's average the two. $450k each. Watts does expect the Cougar business to be large. $450k x 336/yr and 151200k/yr. 151.2 mil. Do a modest profit margin of 15% after expenses, and we have 22,680,000. Dilution won't be filled until Dec. 2006, but say it is in 2005. All 300 million shares. I get .0756. Give it a PE of 20 and $1.51 per share. For me this is a conservative rationalization. Opinion or different view? Larry
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