I'd like your take on a penny stock, symbol DGIF. I own a little, thinking of getting more. Highly speculative but they are in the process of merging with a company that provides data storage/archiving at greatly reduced cost and space with contracts with several military bases. I think once they complete their funding and merger this stock will take off. Right now it is thinly traded. What do you think?
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I'll be honest. Hold what you have if you think that there's a chance. This is essentially like buying a lottery ticket. Maybe there's a chance that they will hit it big! But, everything that I saw has me believe otherwise.
First, the news releases. Nothing has been released concerning the company besides some information from 6 months ago. I couldn't find any information about such a merger in my quick research that I performed, other than the mergers and acquisitions that took place in February of this year.
Seen here (http://www.releasewire.com/press-releases/update-for-digital-info-security-2017-766841.htm).
A lack of transparency over such things can imply issues with said merger. It also doesn't explain why the CFO stepped down since February (https://relationshipscience.com/peter-van-dorn-p3766595). A lot of other members of the board have stepped down as well. That opens up for a lot more questions. Did they get fired or did they jump off a sinking ship?
Next, the company has extremely small volume. Less than 2,000 shares traded per day. In addition, the company accounced a 1 for 40 reverse split. This was to increase it's value of it's stock per the last release that was previously linked. Said stock has since not increased in value since that time.
Third, Website doesn't work. A technology driven company not having a website is a major red flag for most people. The forum post following the stock, seen here (https://investorshub.advfn.com/Digital-Info-Security-Co-DGIF-8120/) has the website posted there. Said website is under construction.
Lastly, the buying and selling of the stock isn't constant. The company is bought and sold on maybe 1 day per week. Take a look at the following 5 day chart.
http://www.marketwatch.com/investing/stock/dgif/charts
the stock was only sold on 1 day of the past 5. That's troubling.
In the end, I don't really need to do financial analysis. One, because it's hard to provide actual analysis without access to financials (they help provide hard data). Secondly, because right now the company just doesn't seem like it is doing well right now. In fact, it appears to me it's on it's last legs. I would use caution before investing anymore of your hard earned money into this.
If you have a hole burning in your pocket, feel free to follow me. Tomorrow I'll be doing a report on a company I plan on buying this week. No guarantees that it will make money, but I think it's a good value stock to consider.
Please feel free to post any more questions you have.
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