dfsh...hiiiigh risk
posted on
Nov 09, 2009 12:55PM
Edit this title from the Fast Facts Section
Not sure if anyone wants to follow...this is a pump so very higggh risk...not sure if I'm even going to look at i tmyself, but I like this guys site so I'll post it and do your own dd but treat it like a hot potatoe if a profit presents itself...the story sounds interesting but I'd watch for awile before stepping in....it's also an otc stock and I very much dislike those unless they also trade on a big board somwhere.....there was also something about a rs so not sure if that took place.....risk risk risk.........
Oil Rocket Stock Play
Iraq oil reserves and infrastructure are the two powerful themes that drive this company's explosive growth potential. Defense Solutions is already positioned as one of very few American companies permitted to do business with Iraq.
DFSH has received approval from the Iraq Minister of Oil to broker crude oil to foreign oil refiners. Just days ago DFSH announced that it has 7 refiners (3 in the US, 4 in Asia) committed to process oil from Iraq. The next step will be the announcement of an allotment of crude oil from Iraq to be brokered to these refiners which I expect to happen in the near future. I have done some digging and the industry average for oil brokers is $1 per barrel commission which is huge considering one super tanker of oil carries 20 million barrels per load. Only one small order could provide DFSH with $0.62 per share in earnings which is very exciting.
DFSH has exclusive agreements with a number of American companies to sell their products in Iraq. The companies will provide materials to Iraq to be used in rebuilding their country. Materials such as roofing material, bricks, solar street lights and telecommunications infrastructure (Motorola) and various commodities. Also Military hardware companies have contracted with DFSH to sell their products - artillery, personnel carriers, tanks, and various security devices.
Recently Jim Cramer did a special feature on Iraq and made considerable mention of the innumerable contracts that would be coming to US companies later this year. Defense Solutions is perfectly positioned to capitalize on this opportunity. Earlier this year they announced contracts to supply natural gas pipelines and made clear there were many contracts forthcoming.
Bottom line: Iraq has been decimated from war(s). Iraq is desperate to raise cash using its oil reserves - regarded as the 2nd largest in the world. Iraq needs to spend its oil revenue to rebuild it's country. DFSH is incredibly well positioned to benefit from the sale of Iraqi oil and to assist them with rebuilding infrastructure.
I only provide 1-4 rockets (speculate stock plays) per year. This is a high risk play and a small amount of money should be put to work if you decide take advantage of this opportunity.
Defense Solutions popped up on my radar a couple weeks ago and caught my attention. They are a defense, building supply, and oil play wrapped up into one. Also the CEO owns 51% of the shares outstanding which is very bullish. Quarterly earnings have been improving from (.16) to (.01) this past August.
Technical Analysis Chart of DFSH: http://www.thegoldandoilguy.com/goldcharts/DFHS.jpg
Chris Vermeulen
www.TheGoldAndOilGuy.com
Disclaimer: I own shares of DFSH. This is a high risk speculate trade. I am not setting a stop price because this is a long term position and I do not want to be shaken out.