Force Protection, Inc. (NASDAQ:FRPT.DL)

Boatyzaffa (< 20) Submitted: 2/18/2010 11:24:21 AM : Start Price: $5.04 FRPT.DL Score: +6.47

With the current conditions in the Middle East, and with the U.S. committed to sending more troops to the region, 'FRPT' will likely see an increase in sales as their products (armored vehicles) which are made to protect U.S. troops and allies from enemy attacks will be in demand. Fundamentally the company looks strong, it has zero debt and trades at a 10.85 forward P/E multiple. In looking at the balance sheet of 'FRPT,' Q3 -09 shows "current" assets at 455M which is up nearly 100M since Q4 -08. Also, compare their "current" assets in Q 3 -09 to their "total" liabilities of 225M in Q3 -09 and it becomes clear that 'FRPT' is financially strong and holds intrinsic value. Technically 'FRPT' also looks good, I just pulled up a year chart and the risk of owning this stock seems relatively low with the stock bouncing four different times around the 4.30 to 4.50 level which happens to be near book value per share of 4.169. In all 'FRPT' looks fundamentally and technically strong and their product looks like it will be growing demand in the next year or so. Finally, adding 'FRPT' to a diversified portfolio looks like it would make sense/cents.
P.S. In my opinion option strategies like writing cash-secured puts would be the best way to invest and trade the current price action of this stock.
Disclosure: I currently hold no position in 'FRPT'