RHD -- new pick (idea by Mike)....been buying .30-.33
RHD -- Why I think RHD could double, triple, or more from here for a SWING trade:
(1) Way oversold. Down 99%. Trading like it's going bankrupt but our research indicates that's not happening any time soon. Looks like a juicy January effect play.
(2) They have been operational cashflow positive each and every quarter. Very much so -- well over $1/share per quarter.
(4) Huge short position and short ratio: Short Interest (Shares Short) 13,020,000 Days To Cover (Short Interest Ratio) 17.8 http://shortsqueeze.com/?symbol=rhd
DAAT = undervalued, sexy story potential multi-bagger. With the election of Obama, gun sales have gone through the roof (DAAT's main line of business is selling gun cleaning kits to Wal-mart, Kmart, Sports Authority, and a ton of other major retail chains):
In addition to the monster jump in sales, please note from the PR the drastic drop in costs for DAAT due to the huge drop in commodity prices. With DAAT trading at a fraction of tangible book value and growing very fast in this economy with cheaper costs, Q4 could be a potential sales & EPS monster! In addition, DAAT has a tiny float (5 mil shares), is debt-free, and their executives have very modest salaries (CEO pay = $70k annual according to Yahoo).
Interesting to note that SWHC (Smith & Wesson), which obviously sells the goods that lead to DAAT sales, has held up through the market's carnage the last 3 months:
DAAT has a number of new products recently launched and in development. With their retail customers being giant retailers such examples as Wal-mart, K-mart, and Sports Authority, the potential growth in sales through these relationships is very high IMO.
Q3 was an improvement over Q2. I expect Q4 to be a further improvement over Q3 with earnings in the $0.01/share ballpark and possibly higher. I think Q1 will be a further improvement beyond Q4.
Here are the reasons I think VBDG will continue to have improving quarters:
1. Retail sales have been growing tremendously in 2008 while transactional sales slowed. The drop in transactional sales was consciously chosen by VBDG due to escalating advertising rates. Because of the massive drop in advertising rates, transactional sales will rebound in a huge way while retail sales will continue to move higher. This will grow VBDG's revenue and earnings.
2. Margins will be improving in Q4 and beyond because of the drop in oil prices and the increase in value of the US dollar.
3. VBDG has been undertaking efforts to further reduce costs which will improve earnings.
4. Sales of MyPlace are going like gangbusters in Q4. VBDG just announced a $1M Q4 reorder presumably from Bed, Bath, and Beyond.
5. A massive number new products are being introduced. Here is a list of new products that VBDG has specifically named.
- Heated Ice Scraper (Q4 introduction) - MyPlace Cozy (Q1 introduction) - Genius Air (web site running already!) - Nicer Dicer (2009) - ECOBALLS -| - EcoSavR |- These are being tested already - Detect -| - MyPlace Cozy (Q1 introduction) - MyPlace Couch Potato - MyPlace Ultra
This list is in no particular order (except that the most recently updated tends to be toward the top) nor are they owned in equally weighted amounts as some we may have a LOT of money in while others very little as of the last update. Any links are thoughts as of the date and time they are written which may not be current. Also some symbols and/or links may be dropped from time to time without further update as the information/opinions mentioned simply become outdated. Please verify all claims and info, and do your own homework in addition.