Seeking Alpha

Digital Ally reports $1.1M order from Michigan police

  • Digital Ally (NASDAQ:DGLY) is back on the move after receiving an order valued at more than $1.1M from the State of Michigan.
  • The company previously reported a one-year extension of its contract with the Michigan State Police, bringing the contract's value to $4.5M. New products have since been developed, and while there were no orders in H1 thanks to testing, the sales are now starting to materialize, and the value of the contract is now closer to $6.5M.
  • Source: Press Release
  • Shares +10% premarket
Comments (5)
  • Rope a Dope
    , contributor
    Comments (596) | Send Message
     
    This stock was trading at $3.16 on July 1st when it caught my eye. Less than 2 months passes and a 300% run-up in stock price? I don't think so.
    28 Aug 2014, 08:26 AM Reply Like
  • anomaly1
    , contributor
    Comments (912) | Send Message
     
    Thank you for pumping this one to short again :)
    28 Aug 2014, 08:41 AM Reply Like
  • Rope a Dope
    , contributor
    Comments (596) | Send Message
     
    I've shorted it myself but am still amazed at the asinine run-up. This is a guess on my part, but it appears some traders see a line on a chart going straight up and they believe it will continue to go straight up.

     

    I occasionally see stocks that defy gravity a little, but I have to wonder how many people buying this stock have figured out how long it will take for these hypothetical future orders to register as quarterly revenue.
    28 Aug 2014, 09:08 AM Reply Like
  • GT3211
    , contributor
    Comments (28) | Send Message
     
    According to Marketwired, the $1.1 million order will be shipped by Sept. 30, 2014, so five weeks from now.
    28 Aug 2014, 12:07 PM Reply Like
  • Rope a Dope
    , contributor
    Comments (596) | Send Message
     
    I have not tracked orders closely, but regardless I haven't seen anything that warrants a 300% increase in share price in less than 2 months.

     

    I know better than to play with fire (you can't short sentiment) but DGLY is shaping up to be a superb short candidate.
    28 Aug 2014, 12:27 PM Reply Like
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