Bought 7000 More Shares Today and wiped out my tfsa cash reserve--from $1812.34 to $34.00 plus change. I have over 70k invested book but down fairly badly. With this being said, I think there may have been some posters who have stated that our equipment contract is most likely with the Saudis i will highly agree with that and the reason I actually increased my holdings today by this number as well as for strategic purposes. I have a set sale price of $1.50 for 18,000 shares but only had 11,800 in my tfsa and 26,200 in my cash account. I want to avoid paying capital gains on shares that I believe i will be selling low and hold the ones outside longer term.
If what i believe is correct that our contract is with the Saudis the chances of not earning the $400 million over 5 years is extremely slim--i would peg it at 2-5% slim--with a high probability of being successfullly achieved of 95-98%. I will provide a link that has been I suppose updated February 2017 and it is a military one where the US military sales is about $100 billion to the Saudis.
Now, I used to work for an employer who was helping students sponsored by the Saudi government write statement of purposes for post secondary admittance applications. And as i was working i did some digging on the Saudis as they are trying to modernize and transform the Kingdom into a hub that attracts the international businesses and have set aside what from my understanding is around 100-200 billion Canadian to do so--it was 300 billion Saudi riyals so whatever that works out to--forgot the figure so going my recollection
In any case as to my recollection around 50% or more are 25 years and younger and so the government had sponsored students to get a Western Education partly to have a highly educated working class and also partly to avoid any problems at home with disgruntled youths having too much time on their hands. The Saudis are huge on Canadiana and American credentials it is looked extremely favorable in Saudi Arabia and they have been buying military equipment from the Canadian government as well as drones possibly from non-governmental agencies, so they are looking for the best.
Now with all this being said, unless our quality is not up to standard or there is a problem on our end, once again the liklihood of things not being fully successful as to the 5 years $400 million potential contract is extremely low.
Here is link that i found
https://www.state.gov/r/pa/ei/bgn/3584.htm I hope this works--sorry in advance if it doesn't.
I honestly wouldn't have bought if i didn't strongly believe the deal is with the Saudis and what i know about to some extent is going on in the Kingdom--this investment providing it is indeed with the Saudis will do extremely well but that is only my opinion we will have to wait and see for sure.
The Saudis will easily be able to handle this contract!!!
good luck to all.