DawgTrading

DPW Looking attractive as subsidiaries booking more orders

Long
AMEX:DPW   None
AMEX:DPW

After a large run up in late 2017 the stock has made acquisitions that look attractive on paper. Looking at the companies subsidiaries and earnings calls the multiple companies are making good orders. Their purchase of a hydro electric dam in upstate NY should be coming online Q4 2018, attached to the hydro dam is another subsidiary that is going to use the dams cheap electricity to manage crypto mining operations.

Pros
- after financing and acquisitions subsidiaries are funded to complete projects and generate revenue growth
- tie in of multiple subsidiaries to work together such as hydro electric dam and mining operations
- rising revenue
- increase in institutional and insider ownership

Cons
- after a round of financing and fundraising there is a cash crunch
- operating margins are negatively too high
- if projects do not keep booking orders and projects do not come to fruition in time there could be more debt issuance

The stock price is almost exactly where it was when it was pumped up in 2017. It could drift lower if no good news comes through, but if something powerful does show this could have a nice move higher.

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