American Defense Systems unfair neglect...
July 09, 2009
– Comments (11)
Varchild first bought into (EAG) American Defense Systems on February 6th, 2009 at 83 cents a share and then bought more the same day at 84 cents a share.
Since then...Varchild bought at 75 cents, 73 cents, 71 cents, 64 cents, 57 cents, 53 cents, and 52 cents a share. Grand total share count thus far?
6,261 shares (approx. between .01% and .02% stake in the company's total outstanding common shares.)
At this rate in 5 years or less Varchild will have enough shares to be forced to report his stake to the SEC, cause it only takes about 5% to reach the limit at which you must report what you got.
*yikes*
I have no interest in purchasing any more shares for the time being because of this.
Let's say I abandon all of my shares in all of the other companys that I have in my portfolio and then spend the money entirely on EAG stock at the current today's closing price of 48 cents a share.
I'd have WELL OVER 64,594 total shares.... That would be between .17 and .18% stake in total common shares.
With an RSI value of near CRITICAL 33%.
That huge of a stake at a critically low RSI value in a Company whose business is absolutely far better this year than it ever was in company history. They have a much bigger backlog today than they ever had before and with the latest presser regarding the HMEE vehicle saving a soldier's life due to the armor that ADSI (EAG) makes....that speaks volumes in just how bright a future ADSI has inspite of how competitive the Armor Industry is.
Sure, there is a lot of competition in the defense sector making lots of investors believe that when you invest in a defense stock you are gambling on X contract or Y contract going to that company.
Well... I say that type of attitude is wrong. I say these defense stocks like (EAG), (BA), (FLIR), (RNT), (FRPT), (LMT), and so on.... All have MOTLEY FOOL Long Term Growth Value.
There's no reason to abandon EAG cause the share price keeps dropping. Which is why I keep buying... staying on the *BUY* side until that share price goes to where I believe Fair Value is.
Right now... This ain't no FAIR VALUED stock... EAG is being treated here with Unfair Neglect.
Short-Term fly in the pants investors I guess don't like the idea of buying a stock like EAG and holding onto it forever like I do.... That's fine... Let them leave... When this strikes at or near 37 cents a share (its 52-week low) then rest assured... If the share price doesn't spike back up again I am certainly going to be beyond motivated to dump something large in my portfolio and use the cash to scoop up more shares.
Maybe I'll ditch my MSM stock. EAG's falling share price is definitely pushing me to dump something.
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