J. Connor

Digital Ally: Microcap with Explosive Appeal

Dan,

I (We are) am patiently waiting your latest coverage on DGLY. You, solely, have been the only coverage out there on this fast growing company. RJ Faulkner has some info. but it seems to be rather dated.

We have tremendous accumulation going on this morning. I believe it can be attributed to the latest news on the renewal of a contract accompanied with some test sales of the new flashlight.

The future flashlight sales have a terrific upside that will begin to influence the bottom line. Also, the plans with the DVM 250 to reach other transit systems will ramp up growth of revenue and earnings for several quarters to come. Both will help to diversify this company's product line and provide multiple streams of income.

Thanks for the continued, excellent coverage and I see a big analyst joining us very soon. Just a prophecy!

Digital Ally: Microcap with Explosive Appeal

I believe in this stock and your analysis was excellent. Technically, I think DGLY will break from this post an flag formation and hit $11.50. At that point some consolidation may take place but fundamentals hopefully will continue to be great.

DGLY expected at one point last year to earn .10 per share but eclipsed that with the final .28 per share on 19.4 million in sales. They have expectations of over 40 million in sales this year. Can we expect about .56 per share this year? Also, what will occur if they do better (like last year .10 est vs. .28 act) and beat estimates again?

I have a 12 month target of $15. I came to this conclusion from the following: last year .28 EPS with $7.50 stock price before consolidation period (jan to mid-april) or 27 PE multiple; this year .56 est X 27 PE = $15.12. I understand things must continue to go extremely well for this to happen but why not?

Your thoughts?