Everything looked great for Digital Ally (NASDAQ:DGLY) stock owners just a few months ago when things started to heat up in the U.S.
The results were not great, and the stock is priced at super-fine. On June 2nd DGLY announced the pricing of an underwritten public offering of 3,090,909 shares of its common stock at a price of $1.65 per share. Back then this pushed the stock price from almost $2 to $1.65 but shares bounced back to over $5 in a matter of days.
And that was it.
These are small sales and profit numbers that DGLY got lately with TermoVu order being one of the biggest orders in July (as far as I can see in their press releases) . But the direction of the fundamentals is very strong. In the end, I sort of think of this as a big valuation reality check. It’s a reality check that might be long overdue, especially if Digital Ally spends so much energy promoting racing via their Twitter profile.
Keep working! We will reach the top again soon🤟 https://t.co/UwQOPYIwWk— Digital Ally, Inc. (@DigitalAllyInc) July 22, 2020
I wonder how many sales will these racing sponsorship programs bring in? Is this in the best interest of the investors?
They’re at a very interesting nexus between security and health. Both of those are segments with pretty strong secular growth, but you wonder whether there’s a sustainable competitive advantage here. Is Digital Ally really doing something that other companies couldn’t do in a relatively short period of time?