Does FRPT appear like a good buy for right now?

Answer 1

That depends on how dangerous you see the future, or if we will be expanding efforts in Iraq and Afghanistan, perhaps to include other parts of the world, like Sudan (Darfor) where things are nasty and people need vehicles armored against IEDs.

The company isn't quite making a profit and there was a big jump in price. The question is can the market sustain that jump. Sales of the stock aren't exactly like the numbers of most stocks we talk about, so if you are buying a lot you will be a market mover for it. But you could easily do worse. I'd say go for it. The chart may have had a short downturn but there was a steep slope and tall climb over a short time to get there. Good catch even if it may fall. The world is a dangerous place and there will be people in need of their product for a long time to come.

Answer 2

It is not a good buy right now.

Force Protection is a leading provider of blast protected military vehicles used by American troops in Iraq. The company’s armored personnel carriers (“Cougar”) are based on technologies that are licensed on an exclusive basis from the government of South Africa. A larger version (“Buffalo”) is used to dismantle minefields and clear routes. A smaller transport (“Cheetah”) recently was introduced. Force Protection has delivered approximately 400 vehicles to date. Those units have proven more effective than older designs in deflecting roadside bombs, which have plagued American operations in Iraq. No deaths were suffered in more than 2,000 attacks until last November. Details surrounding those casualties were not revealed. The company has declined to comment on whether any more deaths have occurred since then. That secrecy may have been related to a recent stock offering. It also may suggest a vulnerability has been discovered in the vehicles’ design.
Military demand appears to remain strong despite the setback. Force Protection’s vehicles may not be impervious to attack but they nonetheless provide far greater protection than existing units. Deliveries to the U.S. Army and Marines under existing contracts are surging. And Force Protection recently formed a joint venture with defense industry giant General Dynamics to pursue additional programs. Our estimates assume that 50%-50% partnership will win a large “Mine Resistant Ambush Protected (MRAP)” vehicle contract in early 2007. Revenues generated by the venture will be recorded at 100% by Force Protection. Reported profits will be reduced by General Dynamics’ 50% interest. Our estimates assume start-up costs will not be significant. Margins might be impacted more than projected, though, due to the bureaucratic relationships involved. Longer term, the General Dynamics partnership could help Force Protection land additional orders. One large opportunity in particular is a proposed upgrade of the Humvee fleet. Force Protection outperformed several competitors in a demonstration conducted last June. If the company wins a portion of the final program results could keep accelerating well into the next decade.
These shares are priced to perfection. Growth is likely to remain robust. But gains beyond those already on the horizon are speculative in nature. Force Protection’s proven track record could make the company an attractive acquisition target. It is unclear how large a premium its intellectual property will command, though. There also is some question about the Government’s ability to finance a rapid build-up in its vehicle fleet. The contemplated surge in Iraq promises to divert funds from new equipment programs. Once the conflict is resolved, moreover, overall military spending may decline. Force Protection is well positioned to enjoy excellent financial results over the next several years. Most of that growth already appears to be reflected in the stock price. Further upside is possible. Risk is elevated, as well.

Answer 3

It probably will not gain or lose much in the near future...so I really wouldn't go overboard if you're buying.
"8" ? Didn't I recommend PCU to you about a week ago?
..it DID have a nice week... up around 10%, but down today...