Digital Ally (DGLY) Stock Up Big on Ferguson Unrest
Shares of Digital Ally Inc. (DGLY) were up +$1.25 or +10.0 percent to $13.75 per share in premarket trading this morning, after having traded as high as $14.50 or up +80 percent yesterday. The increase in the stock is in large part due to civil unrest in Ferguson, Missouri that boosted demand for their products. Digital Ally stock closed at $12.50 up +4.56 or +57.43 percent in Monday's regular trading session.
The company first drew attention on August 18th when an article in Time was published citing the mayor of Hawthorne, California calling for city police officers to use body worn cameras. Mayor Chris Brown urged officers to use the devices in the wake of civil unrest in Ferguson, Missouri after the fatal shooting of an unarmed teenager by a police officer on August 9th.
The violence in Ferguson also spurred a petition drive on the White House's website for law enforcement officers to wear cameras. The petition quickly garnered 100,000 signatures and is the leading petition on the website. The petition's creator, Johnlee Coe Jr. told reporters that if officers had been wearing cameras on the night of the shooting, most of the subsequent violence and looting in the St. Louis suburb could have been avoided.
A study by Cambridge University found that complaints against officers fell drastically after the officers began wearing cameras on the job. The study found that both officers and suspects were significantly deterred from violating rules while being videotaped.
In a conversation on Monday, Digital Ally's Chief Executive Officer, Stanton Ross told Reuters that he has been receiving offers for the company "all the time but would not disclose details until a letter of commitment was signed. "We have had a lot more enquiries because of the civil unrest that is going on over in Ferguson, he told the news agency.
While digital cameras account for only nine percent of Digital Ally's total sales, according to some sources, the market for wearable digital cameras in the United States could exceed $500 million. Digital Ally's market cap is currently $33.8 million.
Digital Ally's stock has had an amazing week. After the Time article, company shares doubled, trading from under $4 per share on August 19th to over $8 per share on the 20th. The stock then traded between $5.80 and $8.50 per share for the rest of the week.
Yesterday, the stock soared, gapping higher and trading over $14 per share on exceedingly high volume of 23, 875, 748 shares - more than the company's outstanding shares. The stock has is now up a whopping +224 percent since August 19th. Nevertheless, sellers have borrowed as much as 68 percent of outstanding stock to sell short, which could eventually propel the stock even higher.
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