SwingTrade Member Forum

[MikeDDKing]

DAAT 4/21/09 Update

DAAT is a severely undervalued company with growing earnings that I expect to move up in price over this year. DAAT sells gun cleaning kits, gun locks, and household items. Here are some reasons why I think DAAT will appreciate:

1. They made $0.04 in Q4 which was a 133% increase over Q4'07. 2008 EPS was $0.06. With a last trade of $0.34 they are trading with a trailing PE of less than 6!

2. They should have greatly improved margins going forward thus driving earnings growth. During 2008 they had escalating costs due to commodity and shipping rates. Commodity prices have dropped like a rock and shipping rates have been reduced. They greatly reduced their high price inventory in Q4 and now will have lower price/higher margin inventory to sell.

3. The book value of DAAT is $0.85/share so they are trading at a massive discount to book value!

4. Guns have been selling quite well which should help to drive their gun accessory sales.

5. DAAT has been buying back shares in the open market. Since September they repurchased 4% of the current outstanding shares.

More DAAT DD can be found here:
http://investorshub.advfn.com/boards/board.aspx?board_id=3270