Force Protection, Inc. (FRPT)

boiseidfool (71.72) Submitted: 5/14/07 2:36 PM : Start Price: $27.33 FRPT Score: 68.19

See blog for further details, but suffice to say I’m concerned about the company’s ability to produce the vehicles they’ve contracted to deliver before May 2008. A conservative estimate of vehicles on order coupled with a backlog from 2006 suggests FRPT may be obligated to deliver nearly 1,000 vehicles, not counting General Dynamics’ share of the load. This with a track record of producing, on average, 178 vehicles per year over the past two years, suggests trouble may be on the horizon. If a company develops a reputation for not being able to fulfill their obligations, coupled with a looming War on Terror budget and financing showdown on Capitol Hill, FRPT could be an early defense department contractor casualty, though they’re spending a tremendous amount of time, money and effort to position themselves to compete for the estimated 200,000 Humvee replacement contract/program projected for sometime around 2010.

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