Sunday, June 24, 2007

Big Week for FRPT


The last time FRPT dropped below the 50 day MA and rode the 100 day MA we saw a nice upswing soon after. I'm hoping for a repeat of this action but there are several catalysts that could effect whether this happens.

  1. Russel Index inclusion- More information to be released Monday, but had to effect the volume late Friday as total volume reached 12.6 million shares trades. With more shares in safe institutional hands this is a plus.
  2. FRPT management has stated that if the DOD would like 12000 vehicles by Dec 08 they need the orders by July 1st. No orders=no ramp up for demand.
  3. Orders to competitors has always shown a sharp decline in share price, although shareholders know they are coming and possibly this week due to congressional and public pressures. FRPT can not supply the entire demand of the DOD.
  4. We are still waiting for the official 180 Buffalo order.
So it could shape up for a very exciting or deflating week, depending on news.

No comments: