I purchased 8000 shares at .50 of DFNS (DEFENSE INDUSTRIES) on April 9th 2007

DFNS is a company based in Israel that deals with defense.

This company has announced some big orders for their products in the last couple of months. They should grow revenue dramatically especially for the first 2 quarters. The stock has moved up some already though due to that news. Last year they did roughly $10 million in revenue I would think they could do $15-$20 million this year. The Ceo owns 2/3rds of the stock. How much in earnings could they really do? I don't know could be .03-.10 if it is on the lower end the RISK of this stock could be a good deal. With roughly 30 million shares and if it does $15 million in revenue that is a 2 to 1 price to sales ratio. The real question is will the orders they have announced turn into additional orders for now and the future. In the past the company has been stagnate as far as growth so is this year a fluke or can they really continue to grow?

Their seems to be decent support at .45 and .40 if it breaks that then .30. I would probably exit the trade below .30 if it got that low. On the upside they have hit their 52 week high in the low .60's a few weeks ago. If that breaks it could head toward $1.

They should have a couple of monster Q1 (will be out by May 15th) and Q2 (Will be out by August 15th) year over year which could really move the stock. Especially if the company can produce a couple cents per share in each quarter.
It does have some risks if they can't produce additional orders or if they can't turn a profit this could go down to .30.