Here we go again, DLGI, Data Logic International is currently bidding 27 cents, asking 28 cents. This is an $11M market cap company that has had a nice run of recent insider buying.
Here's the kicker, from Briefing.com earlier today:
Lojack (LOJN 24.45 +1.12) is catching a bid this morning on a strong earnings report. Ituran (ITRN) is a name we have profiled in the past as a sympathy play (see recent comment). We thought we'd at least bring DataLogic (Bulletin Board: DLGI.OB) to your attetnion. The co is a provider of GPS-based mobile asset tracking and secured mobile communications. The co recently announced that it directed the Tucson police to the exact location of a stolen vehicle equipped with BounceGPS. Co says that unlike radio frequency vehicle locating systems that require special equipment to be installed in police vehicles, BounceGPS uses real-time tracking that provides the precise location of a vehicle at any time, resulting in quicker stolen vehicle recoveries. The co posted a small Q3 profit and sales rose 62% to $4.9 mln... Don't know much about the co and the stock trades at $0.25, but thought we'd mention it.
Story Stock + Insider Buying + Penny Stock = AllAllan Pick
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9 comments:
What buying? You mean option exercises?
Listen to the call: http://www.wallst.net/audio/audio.asp?symbol=DLGI&id=1760. Seems there's a combination, the form 4s are confusing, they have both stock options and buys, and may have made mistakes on the codes (since the options/buys are around the current stock price).
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Company is profitable, cash flow positive, growing their stash of cash in the bank and annual revenues twice that of their current market cap. This is one of the rare times you can get a dollar for 50 cents.
Their revolutionary BounceGPS will make the Lojack obsolete.
http://messages.yahoo.com/bbs?action=m&board=15784317&tid=boscf&mid=4620&sid=15784317
Hi Allan,
Thanks for your blog.
I have a question that is simple for you but I'm left in doubt when I try to answer it on my own--WOuld you please teach me how to calculate the debt/equity ratio of a company. Thank you very much.
Ali
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Ali, here are some links that may be of some help. I'm not a big fan of ratios as predictive of anything, so I wouold rather point you toward more objective views and let you figure out if there is anything there:
http://www.netmba.com/finance/financial/ratios/
http://www.investopedia.com/terms/d/debtequityratio.asp
http://www133.americanexpress.com/osbn/tool/ratios/debtequity.asp
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Allan,
Thanks for the reply and links. I read them and benefited. I'm interested in debt/equity ratios because I choose to follow Islamic religious restrictions which prevent the buying and selling of debt and consider a share in a company with higher than .5 debt/equity as impermissible to buy or sell.
Unfortunately rather than learning learning how to calculate it from the balance sheet myself I've been relying on msn.com, which doesn't post detailed info for penny stocks. Since I didn't learn how to make the calculation, I have watched the opportunities you've shared with us pass me by.
Congratulations on your long trend [not merely a streak] of powerful picks. Thanks for sharing--thanks for making friends and helping friends make money.
As for the ratio thing--I opened up PTSC's 2005 10-k report, went to the balance sheet, and, well, then I got lost. Are there clear rules I can follow to independently calculate an accurate number?
I'm going to focus on this topic, whether it's simple or complex, until I've mastered it.
Don't worry, though, I won't bug you further about it:).
55% in a day, and we're not talking about NNVC--wow. That calls for celebration, responsible celebration.
Take care,
Ali
I'm going to focus on this topic, whether it's simple or complex, until I've mastered it.
Somehow, I believe you will. As for anything more specific in calculating more accurate numbers, my best suggestion is to use a Goggle search and methodically go through any relevent hits. Works for most research issues.
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Allan-
Been reading your blog off and on for about 6 months now and have been impressed with your stock picking acumen. Today I pulled the trigger for the first time on a stock you featured, DLGI, after doing my DD. This little gem of a company could be worth considerably more in the next year or two.
Question on PTSC, how do they monetize the licensing from the companies that have entered into agreements with? Will the revenue streams be ongoing? Do you have any feel for the metrics that will be used to predict revenue growth from say, HP or Casio?
Lastly, do you think PTSC is still a buy at .92 ( I think it is- but hey thats a SWAG).
Great information you have been posting. I enjoy visiting your site.
Best wishes for a prosperous and healthy 2006!
DV
DV
Can't provide any insight into PTSC internal growth models, beyond my interest and expertise. As for whether it is still a buy at $0.92, I think that depends on your individual situation. If you have no shares, you could establish a small position here and then average down if it falls, or average up as it rises, or stand pat with the smaller exposure. If their patents are powerful, in a legal sense, the company can be worth a lot more then $0.92, but that's a big "if."
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