DGLY is due for a correction
Updated
Digital Ally, has had a bit of a slow motion pump after earnings in mid-May. Insofar as the
earnings go, there were none. The news is DGLY is burning cash less than expected. No matter
how you cut it shareholder value is not there and still the price went up since then especially
in the last few trading sessions. DGLY could dilute shareholders to raise capital. Insiders
could be manipulating the price. According to FinTel, there are 12 insiders who own 7.7% of
the shares. Seemingly, if they act in a coordinated scheme without any paper trail they could
have run the price up especially if they got help with one of the several penny stock trading
rooms with lots of followers. Overall, this looks like a pop and drop pumped up and ready
to flush. I will take a short trade of put options on this expectant for a quick profit over
a week or two.
earnings go, there were none. The news is DGLY is burning cash less than expected. No matter
how you cut it shareholder value is not there and still the price went up since then especially
in the last few trading sessions. DGLY could dilute shareholders to raise capital. Insiders
could be manipulating the price. According to FinTel, there are 12 insiders who own 7.7% of
the shares. Seemingly, if they act in a coordinated scheme without any paper trail they could
have run the price up especially if they got help with one of the several penny stock trading
rooms with lots of followers. Overall, this looks like a pop and drop pumped up and ready
to flush. I will take a short trade of put options on this expectant for a quick profit over
a week or two.
Trade active
Shorts are up 10% with the expected price drop - looking to get down to 3.25 before closing the position.Trade active
DGLY dropping well. running full position thinking about adding tomorrow if the general market is also trending down.
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