Sometimes success comes when you have the right product or service at the right time. Case in point, Digital Ally, Inc (DGLY) which is exploding higher today, up 64% in half a day. So why the sudden explosion in Digital Ally, Inc share price? Let’s examine.
First off, Digital Ally, Inc (DGLY) is currently trading at $30.55, up $11.89 on the day, on volume of almost 15 million shares. This compares to the average daily volume in DGLY of just 3.5 million shares . It is well off its intraday high of $32.52 though it looks like it could regain momentum in the afternoon session and surpass that high before some profit taking takes place. DGLY hit a new 52 week high of $32.52 today, and its year low is a paltry $3.03 on the year. That’s quite a large trading range, so this stock is no stranger to volatility
This stock is a perfect example of a company with the right product at the right time. The company makes video recording and storage devices for law enforcement and security applications. Think dashcam videos, rearview mirror cameras, AND on body video cameras for officers and security personnel.
So along comes the police killing of a civilian in Ferguson, Missouri on August 9, and suddenly law enforcement agencies and departments around the United States, and the world suddenly realize they need more, and better, accountability of their officers in the field.
Who better to capitalize on the Ferguson event than a company that specializes in video recording and storage equipment for law enforcement? And so, investors stand up and take notice.
On August 18th Digital Ally, Inc (DGLY) stock was trading in the mid $3 range. Today, it trades around $32.00. However, for once, this is not all about just being in the right industry, like for example, the marijuana stock bubble earlier this year. Digital Ally, Inc (DGLY) actually has solid products and has been getting a lot of inquiries from law enforcement departments around the country.
More importantly, Digital Ally, Inc (DGLY) has been getting real, sizeable, orders for their products and services. Last Thursday, DGLY received a new order from the Michigan State Police worth an estimated $1.1 Million. That brings the total value of orders from Michigan State Police to $6.5 million this year.
The question is can the small company meet the demand for their products, and can they compete against larger players who will no doubt swarm into the growing industry. Large companies, such as GoPro Inc. could conceivably come into the market and wipe out smaller players such as Digital Ally, Inc (DGLY).
It’s still early days, but for now, it appears that DGLY’s share price may have topped out. It’s interesting to note that the company’s shares outstanding total 2.71 million, while today’s trading volume is over 15 million, meaning each share has changed hands over 6 times today.