If I'm correct in assuming you're referring to DHB Industries on the AMEX, my personal comment on the stock is ...
It's fundamentals look in "good shape", especially when one considers its Annual results. Most of the important Income Statement criteria I like to focus on, are in an upward trend. However, its Quarterly results are looking "flat". Turnover has slowed, with the inevitable dip in other areas such as Return on Cap. Employed, EPS etc.. DHB also carries a bit too much long term debt for my liking. This looks like it's currently under control when one considers its finance charges, but with Greenspan currently raising interest rates, this will inevitably chip away at the Bottom Line. These aspects seem to be reflected in DHB's price performance in the last 3 to 6 months. It's fallen from a high of $21 to its present $8.60. It's currently in a "trading range", i.e. moving sideways, almost as if the stock is waiting for something to happen !
Compared to other stocks in the same business, its P/E is relatively low. If it wasn't for the flattening off of its Quarterlies one could regard this as a good buying opportunity. In my opinion, for what it's worth, I'd wait for its next set of results. If they show a decent improvement in Turnover etc.., and the P/E still sits at its current 11 to 12 mark, then DHB's stock price should have good reason to move upwards from an undervalued position.
But that's JMO. |
