RedChip Research is valuing DGLY (NASDAQ: DGLY) using a 2.85x EV/S multiple applied to our FY19 sales estimate of $20.7 million. This gives us a near-term target price of $6.00 per share.
We believe DGLY has strong potential for revenue growth by licensing its patented products with private and public companies. In addition, the Company can claim monetary damages from Axon Enterprises, Inc. (NASDAQ: AAXN) and WatchGuard if the Company has a favorable outcome in its patent-infringement suit.
Most importantly, in May, Axon lost its final appeal at the U.S. Patent & Trademark Office (USPTO), and the Federal court indicated a ruling on claim construction is imminent in the Axon litigation. Also, the case against WatchGuard is now moving towards trial.
The Backstory: Digital Ally® (NASDAQ: DGLY) develops, manufactures and markets advanced technology products for law enforcement, homeland security and commercial applications. The Company's primary focus is digital video imaging and storage. The Company is headquartered in Lenexa, Kansas.
Digital Ally’s complete product solutions include in-car and body cameras, cloud and local management software, and automatic-recording technology. These products work seamlessly together and are simple to install and operate. Digital Ally products are sold by domestic direct sales representatives and international distributors worldwide.
Disclosure
(Digital Ally, Inc. [NASDAQ: DGLY] is a client of RedChip Companies, Inc. DGLY agreed to pay RedChip Companies, Inc., a monthly cash fee for four (4) months of RedChip investor awareness services.)
The board of directors of The Brink’s Company (NYSE: BCO) declared a quarterly dividend of 15 cents per share on the company’s common stock. The dividend is payable on Sept. 1, 2018, to shareholders of record on July 27, 2018.
The Backstory: The Brink’s Company is the world leader in total cash management and secure logistics, including cash-in-transit, ATM services, vault outsourcing, money processing, intelligent safe services, international transportation of valuables, and payment services. Our customers include financial institutions, retailers, government agencies, mints, jewelers and other commercial operations. Our global network of operations in 41 countries serves customers in more than 100 countries. For more information, please visit our website at www.Brinks.com or call 804-289-9709.
Lithia Motors, Inc. (NYSE: LAD) is pleased to announce George Hines has joined us as our Chief Technology & Innovation Officer.
Key Quote: “We’re excited to have George’s digital expertise to improve our customer and team member experiences, drive innovation and expand our revenue base.” Bryan DeBoer, President and CEO
The Backstory: Lithia Motors, Inc. is one of the largest providers of personal transportation solutions in the United States and is among the fastest-growing companies in the Fortune 500 (#294-2018). Consumers can buy, sell and service vehicles digitally or through our 187 coast-to-coast locations. Our mission statement, “Growth Powered by People,” drives us to continuously improve and to give back to our communities.
Alt 5 Sigma Signs Wynston Hill Capital As Its First FINRA-Member Broker Dealer to Launch the A5S Cryptocurrency Platform
Alt 5 Sigma’s fully-tested, commercial-ready platform connects financial institutions to the cryptocurrency global markets, allowing broker dealers and others to provide clients to safely and securely acquire and or trade cryptocurrencies with the assurance of reliability, accountability, and transparency.
Why It Matters: With Wynston Hill Capital officially onboard, and a big presence at this week’s National Investment Banking Association’s 144th Conference in NYC, Alt 5 Sigma is well-positioned to capitalize on the financial community’s growing interest.
Key Quote: “Alt 5 Sigma’s compliant platform truly provides for the safeguards in buying, selling and or holding cryptocurrencies, and enables our customers to participate in this asset class without all the inherent risk associated with cryptocurrency exchanges.” – Craig Sherman, CEO of Wynston Hill Capital
Disclosure
(Alt 5 Sigma is a client of RedChip Companies. Alt 5 Sigma pays RedChip a monthly fee for investor awareness services.)
MamaMancini's Holdings, Inc. (OTCQB: MMMB), a manufacturer and marketer of specialty pre-prepared, frozen and refrigerated all-natural food products (as defined by the United States Department of Agriculture), today announced its Chairman and CEO, Carl Wolf, was interviewed on The RedChip Money Report television program. The interview will air Wednesday, July 18, at 6 p.m. ET on American Business TV on The Family Channel, available in 100 million homes across the U.S.
In the exclusive interview, Mr. Wolf discusses MamaMancini’s competitive positioning, growth opportunities, value proposition, and more.
“The RedChip Money Report” delivers insightful commentary on small-cap investing, interviews with Wall Street analysts, financial book reviews, as well as featured interviews with executives of public companies. The show is hosted by Dave Gentry, a leading authority on small-cap stocks and the author of Small Stocks, Big Money, published by Wiley Finance. Gentry has made multiple guest appearances on both CNBC and Fox Business News.
The Backstory: MamaMancini’s is a marketer and distributor of a line of beef meatball, turkey meatballs, and chicken meatballs, all with sauce; five-cheese stuffed beef, turkey and chicken meatballs, all with sauce; original beef and turkey meatloaves and bacon gorgonzola beef meatloaf; and other similar Italian cuisine products. The Company’s sales have been growing on a consistent basis as the Company expands its distribution channel, which includes major retailers such as Publix, Shop Rite, Jewel, Save Mart, Lucky's, Lunds and Byerlys, SUPERVALU, Safeway, Albertsons, Whole Foods Market, Shaw's, Kings, Roche Bros., Key Foods, Stop & Shop, Giant, Giant Eagle, Foodtown, Sam's Club, SpartanNash, Hy-Vee, Topps, Kroger, Shoppers, Marsh, King Kullen, Central Markets, Weis Markets, Ingles, and The Fresh Market. The Company sells to distributors such as Sysco, AWI, UNFI, Driscoll Foods, SUPERVALU, Monterrey Provision Co., Burris Logistics and C&S Wholesale Grocers. In addition, the Company sells a wide variety of its products through QVC, the world's largest direct to consumer marketer, via on-air presentations, auto-ship programs, and direct purchases through the internet.
Disclosure
(MamaMancini's Holdings, Inc. [OTCQB: MMMB] is a client of RedChip Companies, Inc. MMMB agreed to pay RedChip Companies, Inc. a monthly cash fee for RedChip investor awareness services and consulting services.)
GSRX Industries (OTCQB: GSRX), formerly known as Green Spirit Industries, a cannabis business building vertically integrated operations in Puerto Rico and California, reported record revenue in the second quarter and anticipates generating triple-digit growth in the second half of the year. Its growth is expected to be fueled by expanding operations into key facets of the cannabis industry, from growing to extraction to processing, manufacturing, and distribution.
Key Quote: “By vertically integrating our business during the first half of 2018, from cultivation through extraction and manufacturing and all the way to serving consumers through dispensaries and delivery, we are building a cannabis company that is poised for success at every stage. We are well-positioned in both California and Puerto Rico to reap the benefits of both medicinal and adult use sales.” – Les Ball, CEO
What’s Next: GSRX currently operates three medical cannabis dispensaries in Puerto Rico and one in California, with multiple additional dispensaries in various stages of build-out and licensing. The name change reflects the company’s expansion beyond dispensaries, to include manufacturing, grow, and cultivation operations, creating a truly vertically integrated company in the cannabis space. With triple-digit growth forecasts in the second half of 2018, GSRX is set to win.
Disclosure
(GSRX Industries [OTCQB: GSRX] is a client of RedChip Companies. RedChip Companies, Inc. received 1,000,000 registered shares of GSRX for consulting services and 50,000 shares for investor awareness services. Be advised RedChip intends to sell some or all of its shares at any time, including when you are buying.)
Esports Entertainment (OTCQB: GMBL), a licensed online gambling company with a specific focus on esports wagering and 18+ gaming, signed affiliate marketing agreements with 40 additional esports teams as the Company ramps up marketing activities in support of its recent launch of VIE (https://vie.gg), the world’s first and most transparent esports betting exchange.
Why It Matters: The addition of these 40 esports teams brings the total number of esports team affiliates to 100 since the Company’s first announcement on April 5, representing a major milestone for Esports Entertainment Group, as well as a major event within the esports world, where no other esports wagering site has ever signed an Affiliate Marketing Agreement with an esports team. The Company anticipates many more Affiliate Marketing Agreements with esports teams throughout 2018.
Key Quote: “The industry has sent us a loud and clear message – our transparent and trusted P2P esports wagering platform is exactly what the esports world has been waiting for. We expect to sign many more such agreements with esports teams over the summer, with Gamescom 2018 expected to be our biggest week at the end of August. Thank-you to all of our esports team partners for helping us achieve this milestone and prove that VIE.gg is a winner.” – Grant Johnson, CEO
What’s Next: The addition of the 40 esports teams below represents a significant geographical expansion of the Company’s partners. Whereas the first 60 esports teams were heavily concentrated in Europe, the most recent 40 esports teams represent our first teams in South America and Central America, as well as adding further representation to our current three North American teams (USA) via three teams from Mexico. Moreover, many of the 40 new additions are top esports teams within their respective countries with significant fan followings, which bodes very well for the future of these partnerships, as well as potential interest from future esports teams.
Disclosure
(Esports Entertainment Group, Inc. [QTCQB: GMBL] is a client of RedChip Companies, Inc. GMBL agreed to pay RedChip Companies, Inc. a monthly cash fee for six (6) months of RedChip investor awareness services.)
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Quote of the Week
"Microcaps are a three card Monty play. If you don't know how to play, stay away."
- Gregory Sichenzia, Founding Partner of Sichenzia Ross Friedman Ference LLP
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