SwingTrade Member Forum

[MikeDDKing]

05/27/09 DAAT Update

DAAT posted Q1 EPS of $0.03 in a seasonally weak quarter with a 339% increase in net income! That was an impressive showing.

Here are some reasons why I think DAAT will be a huge winner from the current price:

1. Revenue is growing at a 30% clip due to the huge demand for guns and the associated gun accessories that DAAT sells. There is fear of changing regulations which is driving gun sales. http://www.mlive.com/news/chronicle/index.ssf?/base/news-16/1233919064211400.xml&coll=8

2. DAAT's margins are expanding rapidly due to lower input costs and some price increases.

3. I expect 2009 EPS to be in the $0.15 ballpark thus making the forward PE a mere 4.

4. DAAT has recently been buying back shares. They have purchased 4% of the outstanding shares since September!

5. DAAT's book value is $0.89/share so they are trading at a sizable discount to BV. Furthermore, they are debt free!

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