Force Protection (NASDAQ: FRPT)

I noted in my September 17th edition that FRPT, a stock only offering a meager profit at this point in time, was coming back at the end of September.

Yesterday, we learned why. The Army just ordered another $52.8 million worth of these bad boys. This is the most advanced mine resistant vehicle in the world.

I published on this stock back on July 18 at $5.20. It's currently trading at $5.67- not exactly flying up the charts like some of my other ideas of late. Net profit: 9% so far.

This recent order has the stock back in the market's reasonably good graces, but there is a lot of work to do before we make any real money on this idea.

However, this company should do in the range of $1/2 billion in annual revenues for the next five years, and I know one analyst that believes the company will earn about $.45 in EPS this year. Any reasonable valuation would put the stock at $9 or $10 if those numbers come to pass.

I still believe the market over reacted to a contract loss mid summer, and there is a huge gap that will be filled eventually. Check out the chart.

In mid July FRPT lost a rather large contract to a competitor, and you can see what happened with the stock. It absolutely got killed in one day. It closed at $9, and reopened at $6.

I believe in typical knee jerk fashion, the market has over reacted to the event, and the stock is worth far more than where it's trading today. Look for this one to really surge once we either get past the perceived correction, or the market extends far enough sideways for the buyers to be emboldened and jump back in.