The company has been slapped with a class action suit. It has failed to meet delivery schedules due to a cash crunch, and has failed to meet reporting deadlines because of accounting lacunae. In addition, the Chief Executive left. Yet it is a stock to consider owning.
Force Protection is in the business of making vehicles that can stand up to land mines and explosive devices used by terrorists. It serves the United States Department of Defense, with vital roles in protecting our men and women in uniform. It is a key member of the Aerospace & Defense Industry, which is part of the Capital Goods Sector. The business is integral to the military interests of the United States in hostile conditions.
The company has invested in extensive manufacturing and development facilities near the Charleston Air Force Base in Ladson, SC. The company’s site is spread over 260 acres. The Army and the Marine Corps are the two most important direct customers for the company’s specialty vehicles.
The stock has been available at less than $2 during the second half of March 2008. This is against a 52-week high of $31.16. Investors who appreciate the strategic significance of the company’s know-how, and the value of its development and manufacturing facility, will see the values in owning and holding the stock at this juncture.
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