Why Did DSG Global Inc (OTCMKTS:DSGT) Shares Just Break Out Higher?

Why Did DSG Global Inc (OTCMKTS:DSGT) Shares Just Break Out Higher?


DSG Global Inc (OTCMKTS:DSGT) exploded higher on Monday, closing the day nearly 70% above its pre-Easter weekend highs on a surge in volume. The move takes the stock above its recent range highs defining the action so far in 2018. There isn’t anything entirely new to explain the move, though the company has been making some moves.

To wit: the company just announced that it recently completed extensive testing on the 12” INFINITY and is now finalizing the development of molds for mass production of its INFINITY High Definition displays. According to the release, “production is slated to begin later this month with delivery of its first products to customers in April. The company introduced the new product at the PGA Golf Show in Orlando, Florida in late January and generated significant interest.”

DSG Global Inc (OTCMKTS:DSGT) is a technology development company that engages in the design, manufacture, and marketing of fleet management solutions for the golf industry, as well as commercial, government, and military applications worldwide. It sells and rents GPS tracking devices and interfaces for golf vehicles, as well as offers related support services.

The company’s products include TAG Golf, which provides toolkits of the TAG control unit for security, pace of play, geo-fencing, detailed activity reporting, and other applications; TAG Turf to track, control, and compile comprehensive data on the vehicle through the TAG Turf interface; TAG Commercial to monitor and control labor efficiency; and fleet management and security for military and government vehicles.

DSG Global Inc. is headquartered in Surrey, Canada.

According to company materials, “DSG Global Inc. (DSGT) is one of the new breeds of Software-as-a-Service (SaaS) companies that are dominating the IT industry.  DSGT provides electronic tracking systems fleet management solutions and mobile digital data for players. Our clients are using DSGT’s patented technology to significantly reduce costs, increase safety and enhance customer satisfaction.  DSGT has historically focused on the golf industry, where golf course operators manage their fleet of golf carts, turf equipment, and utility vehicles remotely using DSGT’s SaaS Technology.  DSGT is now addressing the PACE OF PLAY problems that exist on golf courses today and introducing the NEW ELECTRIC SINGLE FAIRWAY RIDER G3 to the golf industry. The new Fairway Rider G3 will be equipped with the patented DSG TAG for tracking and the new 7” INFINITY LITE. DSGT is also aggressively branching into several revenue streams, through programmatic advertising, licensing, distribution, commercial fleet management and agricultural applications.”

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As noted above, the company just announced that it is readying an initial rollout of its next-generation golfing display system. Shares have been on the move, with Monday’s breakout capping a 250% advance over the past 7 days.

“Our initial rollout will be 1500 units, which will be installed at various golf courses throughout North America and Europe. The revenue stream will have two components being a purchase or lease over a four- to five-year term, and a residual monthly servicing fee that will include software updates, service, support and cellular fees. Based on the interest we are receiving and the oral commitments we have received, we believe these units will all be presold by delivery dates.  Additional units will be completed for delivery in late May and each month thereafter,” commented Bob Silzer, CEO of DSG Global.

Traders will note a bit more than 120% during the past week in terms of shareholder gains in the stock, a bounce that has taken root amid largely bearish action over the larger time frame. Moreover, the stock has witnessed a pop in interest, as transaction volume levels have recently pushed more than 370% over the long run average.

Now commanding a market cap of $2.7M, DSGT has virtually no cash on the books, which is balanced by about $3M in total current liabilities. One should also note that debt has been growing over recent quarters. DSGT is pulling in trailing 12-month revenues of $1.2M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 24.5%. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $DSGT stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $DSGT, either long or short, and we have not been compensated for this article.

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