posted
I also wouldn't be surprised if they put out some news today. They did that the last time they announced a private placement to kind of counteract any negative connotations of the PP.
Oh and tommmorrow is FRIDAY, which seem to always be good days for FRPT.
Jo
-------------------- "Great Day for Up!"....Dr. Seuss
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posted
New Partnership Aims to Speed Armored Vehicle Production
By KRIS OSBORN
Force Protection, the maker of the popular Cougar and Buffalo armored vehicles, on Dec. 21 formed a joint-venture company with General Dynamics Land Systems to win a U.S. Marine Corps contract to build thousands of Mine Resistant Ambush Protection (MRAP) vehicles.
While the initial contract value is to be $770 million, the total value of the program could be as much as $10 billion, sources said. The 50-50 joint venture, to be concluded within a month, will allow the companies to address a key Marine Corps requirement for the program — rapid delivery of vehicles to meet wartime demands in Afghanistan and Iraq.
“The idea is to merge Force Protection’s proprietary designs with GDLS’s manufacturing and technological capacity,” said Michael Aldrich, Force Protection’s vice president. “Buying enough steel to meet the demand has been a challenge, GDLS brings buying potential in the steel market … We feel a tremendous obligation to meet the needs of the war fighters as quickly as possible.”
According to executives for the two firms, the alliance will allow production of Cougar vehicles to increase from 40 now being built per month by Force Protection at its plant in Ladson, S.C., to 200 a month with GD. By 2008, the joint venture aims to be building up to 300 vehicles a month.
Spearheading the rushed acquisition is the Marine Corps Systems Command, which stepped up MRAP orders in September, and in recent weeks total requests for production (RFP) have risen from several hundred up to about 4,100 vehicles, Marine Corps officials said.
“We quickened the pace because we recognized the urgent and compelling need,” said Capt. Jeff Landis, a Systems Command spokesman at Marine Corps Base Quantico, Va. Force Protection is known for the blast-deflecting V-shaped hull featured on the 23-ton Buffalo and the 14-ton Cougar vehicles, about 300 of which are in use in Iraq and Afghanistan. GDLS is the nation’s leading armored vehicle maker, building the Army’s Stryker family of armored vehicles and upgrading the service’s venerable M1 tank.
Over the past several years, the vehicles have been subjected to some 2,000 attacks from improvised explosive devices, rocket-propelled grenades and mines. The Cougar vehicle was first used in 2004 by I Marine Expeditionary Force units in Fallujah. The last time GD forged a joint venture was when it partnered with General Motors Defense Canada in 2000 to build the Interim Armored Vehicle that eventually that came to be known as the Stryker. The initial Stryker contract was valued at $4 billion for 2,131 vehicles and the alliance paved the way for GD to acquire the London, Ontario-based GM unit for $1.1 billion in 2003. “We’re pleased to be partnering with a strong Force Protection team to deliver a MRAP vehicle that will be used to safeguard servicemen and women,” said Peter Keating, a GDLS spokesman. “It is an opportunity to use the skills and resources of both companies to the best advantage of our customers.”
-------------------- Stick with Repo's plan in '07 - FRPT/DKAM!
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posted
wow! in just over a year, they are going to increase production 7.5 times - that's impressive
Repo, with the Democrats gaining control, I'm sure they are going to push to get out of Iraq sooner than later - how do you see that affecting FRPT production? I have to believe that the war is driving the bulk of the production, right? Or will they end up producing 1000's of vehicles anyways just for future availability and/or replacements of other vehicles?
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posted
MT - the Dems will not factor into FRPT for at least 2 years. First, they don't want to seem soft on defense for the 2008 election, and they have already said that they will cut big ticket items (like aircraft carriers) and will put money into items like FRPT.
Secondly, the Army has mandated to overhaul its equipment. The Hummer HAS to be replaced.. therefore, with or without world peace, the Army is upgrading.
Third, and this is the key, even if the Dems said no more defense spending, until that happens, for every one of these vehicles the DoD buys, until they decide 20 - 30 years from now to replace them, FRPT has the rights to the intellectual property, as well as repairs and parts... gravy. Just like Gilette - give the razor away, make a killing on the blades.
We will see $30 in maybe a few weeks with this announcement.. look at the 8-K on SEC.gov about the Private Placement.. look who got shares - Goldman Sachs, Merril Lynch, etc. We are a big boy now.
Greatest stock since MSFT.
-------------------- Stick with Repo's plan in '07 - FRPT/DKAM!
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posted
Its good to be on the side of the winning team now and then.. now if my NY Jets would just win on Xmas night, I can't ask anything more from Santa!
I would still load up if you have funds... especially for the long term. This sets up GD to buy FRPT 2-3 years from now, God knows for how much.
-------------------- Stick with Repo's plan in '07 - FRPT/DKAM!
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posted
Repo, I think now, even if I THINK of selling it goes up. I actually had a sell order in for $15.80 this afternoon, and when I saw your post about the target upgrade to $19.00 I cancelled in just in the nick of time.
Sure wish I could have those $14.27 shares that I sold Tuesday back, but no sense crying over spilt milk.
I have a question for anyone about Market orders. This is probably a stupid question, but I've never done one. If I put in an order for a market order, they have to fill at the first ask, correct? They can't jump to someone who has a GTC $100.00 order in and fill me at that?
Jo
-------------------- "Great Day for Up!"....Dr. Seuss
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quote:Originally posted by Jo4321: Repo, I think now, even if I THINK of selling it goes up. I actually had a sell order in for $15.80 this afternoon, and when I saw your post about the target upgrade to $19.00 I cancelled in just in the nick of time.
Sure wish I could have those $14.27 shares that I sold Tuesday back, but no sense crying over spilt milk.
I have a question for anyone about Market orders. This is probably a stupid question, but I've never done one. If I put in an order for a market order, they have to fill at the first ask, correct? They can't jump to someone who has a GTC $100.00 order in and fill me at that?
Jo
They have to fill market orders at the INSIDE ask, which is the lowest ask... however, on the BB, they can hold your orders, and move the ask up.. you won't get filled at $100, but you may not get filled at the ask you see when you place the order.
-------------------- Stick with Repo's plan in '07 - FRPT/DKAM!
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Force Protection, Inc. and General Dynamics Announce Joint Venture Company Friday December 22, 8:30 am ET
LADSON, S.C., Dec. 22 /PRNewswire-FirstCall/ -- Force Protection, Inc. (OTC Bulletin Board: FRPT - News) and General Dynamics Land Systems today announced they will form a joint venture to compete for the Mine Resistant Ambush Protected (MRAP) vehicle program, a U.S. joint services program being managed by the U.S. Marine Corps.
The joint venture was formed to offer Force Protection's Cougar 4x4 and 6x6 armored vehicles as an MRAP solution. The joint venture will include an experienced team in program management, systems engineering, production and service support from both Force Protection and General Dynamics.
"This joint venture is an important strategic step for our company," said Force Protection CEO Gordon McGilton. "Combining Force Protection's life- saving blast protection technology with the size and capability of General Dynamics will ensure that the MRAP program will be a success and that the vehicles will be the strongest, most advanced blast- and ballistic-protected vehicles in the world. We look forward to working with a company of the caliber of General Dynamics in producing this critically-needed vehicle for our troops."
"The joint venture will provide our Armed Forces the services of two best- in-class defense companies both dedicated to safeguarding the lives of our servicemen and women," said Dave Heebner, president General Dynamics Land Systems. "Together we will leverage the complementary skills and resources inherent in our companies to produce Mine Resistant Ambush Protected vehicles. I'm pleased to be partnering with a very strong Force Protection team to deliver this mobile and highly survivable vehicle."
The venture builds on an earlier agreement between the companies for General Dynamics to perform structure fabrication of the armored capsule incorporated in Force Protection's Cougar medium mine-protected vehicle.
The Cougar has been deployed since 2004 in the global war on terrorism. It was first used by the 1st Marine Expeditionary Force in Fallujah, and is now used by all branches of U.S. armed services due to its unmatched safety record in the field.
-------------------- Stick with Repo's plan in '07 - FRPT/DKAM!
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