steve0082: DAAT looks like a good play ahead of their seasonally strong 4th quarter. Last year the stock had a big year end rally and I expect that it will exceed its 52wk high of 3.65 within a few months. I picked up a few more shares this morning in the 2.40's.
Pretax income was up 82% for the 1st half of 2005, though the comparisons were difficult with last year due to no taxes paid in the 1st half of 2004. The comparisons are much easier going forward, since they started paying taxes in the 2nd half last year. Here's an excerpt from their recent earnings PR ....
Had the Company not had the benefit of the loss carry forwards last year, net income would also have been up 82%. As we look to the third and fourth quarters, this distortion will no longer exist, as these loss carry forwards did not benefit the Company the last six months of 2004. I feel confident that this trend of increases will continue, resulting in the Company having sales of $9 million to $11 million during the last six months of 2005 and reaching its earnings projections for the year."
Collins also stated, "We are just now beginning to see significant orders for the fall and winter hunting seasons. The new items added to the Wal-Mart permanent module in June are doing well, as are the items carried over from last year, and reorders are picking up significantly, not only from Wal-Mart, but all major sporting goods stores and distributors. The company is also excited about the trigger lock legislation before Congress, being one of the largest manufacturers of gunlocks and handgun safes in the United States. The company also has many new products that are being developed and will be introduced in 2006, enabling to company to continue its rapid growth into 2006 and beyond."
AI
