FOX Translator
No data currently available.
No data currently available.
You're at a fruit market. But, instead of just being able to buy apples at this fruit market, you can also sell fruit.
You're not a farmer, so you come to the market to buy some apples and you see two fruit stands. Fruit Stand A on the left
is buying and selling apples at 50 cents apiece. However, Fruit Stand B on the right is buying and selling apples at 53 cents
apiece. People are buying and selling apples at these two stands all the time, and the price at a stand could change at any
moment. But, while you're there, apples are 50 cents and 53 cents, respectively.
You're a smart person, and you quickly
realize that you can buy apples from Stand A and then sell them across the street to Stand B and make a 3-cent profit. But
you have to do it now; you can't wait. So you buy all the apples at Stand A and then run to sell them all to Stand B.
Congratulations.
You've committed fruit-stand arbitrage.
Arbitrage is exactly that: the selling of the same item between two different
markets to make a profit off the mathematical differences in price. However, it's not apples that are traded--the goods in
question are usually stocks, currencies and other securities. Arbitrage happens when you get a stock, usually a common one
like General Electric that's traded on multiple markets (Japan, Hong Kong, U.S., etc¿). The stock is usually worth within
fractions of a penny the same on each of those markets. However, there are often some minor variations.
People who
participate in arbitrage take advantage of these variations--and make a ton of money doing it. As seen in the fruit stand
example, you can make a "riskless profit" from buying and selling apples between different markets.
There are some
big hedge funds that make almost all their money off arbitrage. But, despite this simple example, arbitrage is mathematically
complex--and involves a good portion of risk if you don't know what you're doing. You probably won't be able to participate
in arbitrage directly, but you can always invest in a mutual fund that does.
Home / Markets / Industries / Industrials
Friday, July 11, 2008
The Allied Defense Group Announces Continued Growth in Ammunition Services
Comtex
VIENNA, Va., July 11, 2008 /PRNewswire-FirstCall via COMTEX/ ----The Allied Defense Group, Inc. (Amex: ADG) announces MECAR USA, its US subsidiary, has been awarded a Foreign Military Sales (FMS) contract with the US Army for more than $6M in small caliber ammunition destined for the armed forces of Afghanistan. Deliveries will begin this year and be completed in 2009.
Having now accumulated more than $46M in backlog so far this year, the ammunition services component of MECAR USA continues to evidence very strong growth. Its customer base is also well balanced in both geographical terms (Asia, Europe, and South America) and in customer identities (US Government and foreign direct sales MECAR USA continues to demonstrate very strong growth and is expected to continue in the coming quarters as well as into 2009 and beyond.
Major General (Ret) John Marcello, Chief Executive Officer of the Allied Defense Group stated, "Our new ammunition services sector continues to grow at a very noteworthy rate. Centered on MECAR USA, we have accumulated over $46 million in service-associated contracts so far this year and we feel confident the outlook for the remainder of the year is equally bright. This new FMS contract adds to an already historically high ADG backlog of over one quarter billion dollars.
"We are making meaningful progress in our quarter-over-quarter financial growth. ADG is not the Company it was one year ago. Since then we have diversified products and markets, reduced debt, bolstered liquidity, disposed of certain under-performing assets, and built new partnering and joint venture relationships. We continue to ramp up production in order to exploit ADG's extraordinarily large and growing backlog. Overhead cost reduction remains a management focus as we seek to drive profitability without impairing our demonstrated competitiveness.
"As an interesting growth benchmark, the potential revenues of MECAR USA's existing backlog now exceed the combined revenues of the subsidiaries we have recently divested.
"I want to reiterate that the fundamentals of our business are strong - as unequivocally demonstrated by recent solid growth to both our top and bottom lines. The Company remains well-positioned to grow and to continue to increase revenue and income in the coming years."
About The Allied Defense Group, Inc.
The Allied Defense Group, Inc. is a diversified international defense and security firm which: develops and produces conventional medium caliber ammunition marketed to defense departments worldwide; designs, produces and markets sophisticated microwave security systems. For more information, please visit the Company web site: www.allieddefensegroup.com.
Certain statements contained herein are "forward-looking" statements as such term is defined in the Private Securities Litigation Reform Act of 1995. Because statements include risks and uncertainties, actual results may differ materially from those expressed or implied and include, but are not limited to, those discussed in filings by the Company with the Securities and Exchange Commission.
For more information, please visit the Company web site: www.allieddefensegroup.com
For More Information, Contact:
Jim Drewitz, Investor Relations
830-669-2466
SOURCE Allied Defense Group, Inc.
http://www.allieddefensegroup.com
Copyright (C) 2008 PR Newswire. All rights reserved ********************************************************************** As of Monday, 07-07-2008 23:59, the latest Comtex SmarTrend� Alert, an automated pattern recognition system, indicated a DOWNTREND on 06-11-2008 for ADG @ $5.81. For more information on SmarTrend, contact your market data provider or go to www.mysmartrend.com SmarTrend is a registered trademark of Comtex News Network, Inc. Copyright � 2004-2008 Comtex News Network, Inc. All rights reserved.
Market Snapshot
| Symbol | Last Price | Netchange | Volume |
|---|---|---|---|
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
