Gathering New Information about Stocks, Health, and Sports

         Recently many of the defense related technology stocks have been hitting 52 week lows while their counterparts in all other sectors have been doing quite the opposite. As such is the case, now may be a good opportunity to purchase some shares of these types of equities such as Argon ST (STST). While still a relatively new company, examining the fundamentals and promise that Argon currently shows, it is absolutely arguable to say that investing in this company may not be such a bad decision.
         As I mention the fundamentals, it is very peculiar to examine the almost impeccable numbers of Argon relative to its recent lackluster performance in terms of share price growth. More than doubling both revenue and operating income from 2004 to 2005 and 2005 to 2006, there is definite potential to Argon to keep up with its competitors, and its products will be tremendously put in demand as more warlike situations become inevitable. While Argon has recently not accumulated the spectacular cash from operating performances juxtaposed to its other values, a lot of such distaste is remedied with the apparent interest in decreasing liabilities relative to increasing total assets. In addition, Argon also supports a P/E of near 24 which, compared to its rivals such as EDO Corporation, is fairly low. It is true that there are other competitors with lower P/E ratios such as Lockheed Martin, but with some slower margin growth in areas such as gross profit and operating income coupled with a share price near its 52 week high, I look for a company like Argon, who is not only newer, but has a lot of potential regarding its numbers to provide results encouraging shareholders.
         Relative to more technical analysis, Argon has preformed over the last couple of years utilizing a support level of 26 and a resistance level of about 36. Now, as Argon has broken the support level this summer to about the 21 range but has only bounced there once, I see with continued strong fundamentals, Argon, especially during more hostile times inevitable in the future, to return back to its prior understood range and at the very least reach 36 dollars per share again. Usually when a stock breaks its support level, such sentiment becomes very negative for many shareholders: an understandable feeling. However, with the case of Argon and its excellent fundamentals coupled with a current but transient poor economic and political condition relative to what Argon desires, there is more potential for this company to be pushed back into the 30 price range a share rather than going below 20.
         Thus, as Argon is still a fairly new company, much sentiment still remains ambiguous of where and how this company will perform in the coming years. However, with phenomenal numbers to support such a claim extended with an ironic but paradox of a technical illustration, there are more beneficial claims to owning shares of Argon juxtaposed to the recent negative sentiments.

-Dennis Biray
November 26th, 2006