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Thought DTGI was successfully executing a roll-ll up strategy of profitable companies. They said they would be making more acquisitions faster after obtaining the Post Road credit line over 10 months ago. Well, all the recent filings clearly show several problems for DTGI. The audited financials from the NEXOGY acquisition shows that DTGI bought a company losing money not making money. Declining sales and zero profits! No growth.
What kind of acquisition is that? The company stated in its S-1 they have no other active acquisitions at this time?! The company has little to no organic growth evident and without acquisitions will not survive. They sold shareholders on the roll-up but apparently can't find or close any deals. Not good folks! This team better pull a rabbit out of its hat or they will be in trouble. Wishful thinking and hanging your hats on one valuation metric is stupid. You will lose your money.
Lols, valuing the company on a multiple of sales is only one of many ways to value a public company. It's the only comparable in which DTGI can claim it is undervalued. Despite, the statement and your math, the analyst at Zacks wasn't using that number to place the potential value on the cover of the report, she used .21 cents. The analyst must not have been very comfortable with your math or that valuation scenario. When comparing to multiples of EBITDA or earnings on a Q over Q basis, or even not using annual over annual revenue run rates which are clearly helped only by acquisitions, this company is extremely overvalued. No evidence of real organic growth which even at 10% is far behind all other peers. the company has made no more acquisitions since last November despite having the credit line to accomplish faster acquisitions. All point to problems. The company's financial position is weak and on shaking ground if they can't successfully make acquisitions, get organic growth above 10%, make profits, and meet financial obligations. If they are rejected by NASDAQ and the offering fails, the company will be in default, and POST ROAD will hold all the cards, not management or shareholders.
Zacks didn't have a .32cent target in their report. It clearly said may be worth up to .21 cents based on EV/Sales. However, when you look at it on EBITDA basis and all the future dilutions it's overpriced.
8k reveals massive debt and 25% of total share count dilution for .01 cents under the warrants issued to secure the expensive financing. Can you people read?! $14 million in debt with $3.5 million to mature in 1 year and $10.5 million in 4 years at 12.5% to 14% interest. These clowns overpaid for the acquisitions and couldn't attract fair financing. They have no way to repay these loans from the minimal cash flow acquired and will now need a miracle to find refinancing or uplift with equity financing. Can't believe we all waited for these acquisitions to see this mess!
Don't get too excited about someone painting the tape late today. This has been a pattern with this stock. Also, low volume and even more extremely low dollar volume. However, maybe these deals will finally close after nearly 15 months! Let's see.
Markets are flying high and this dead money losing stock DTGI is still down over 75% from where I bought it and another 65% from where it was weeks ago! This team needs to execute and get something closed fast!
You people are not very bright. There is NO algo trading driving this tiny stock. It's shareholders who need to sell to generate cash and no buyer demand for the stock. Every single trade only drives the algo bid/ask adjustments, not the actual trades themselves. People are selling because they bought based on bad information pumped by management and bad deadline dates. Some people need cash and can't wait forever for this team to execute their stated plans. That news release preannouncing the annual report as smoke-screen to cover not meeting it's stated closing dates was the dumbest move yet. The longer it takes the lower this stock goes!
They better announce the closing soon. This team has miscommunicated with the shareholders and market for over a year now. Even with announcements, they have no idea how to get street interest or investors into the stock. If nobody knows about DTGI and no buyers show up, it's just undervalued and still long wait until they might have a chance to uplift.
Walking it down on tiny volume isn't the problem. There are no buyers in this stock, therefore, no liquidity. That's the problem! It's hard to sell and get a decent price for those that need to sell some stock for cash. Management has failed to deliver on any of the target dates given for the closing of these acquisitions and people who bought on those new releases are stuck in this dead money, losing stock, if they need to sell to generate cash. This management team needs to prove they can finance and close an acquisition. It never takes over a year for public companies to close an acquisition unless it's a big deal involving antitrust issues. The "financing source" providing the $20 million credit line must have reservations as we are long past the "90-day till closing" timeframe provided by this team in news releases. These clowns need to let investors know why these deals haven't closed immediately, or announce them as closed, otherwise they have lost all credibility!
Most of the massive dilution has come from conversions of debt and financing activity. Management has hidden much of theirs in the form of the newly created Preferred that gives them full super-majority voting control, cancels out any common shareholder voting power, and puts management in the same position as creditors. Which means their interests are not aligned with common shareholders any longer. They are protected just like creditors. Not to mention the financing on the acquisitions is all debt at the operating sub-level not at the pubco level. DTGI will only own 80% of the acquisitions based on the FCC approval documents. So not 100%. Bottom line, if they don't close these acquisitions soon, they can't survive on tiny organic growth numbers of 3-4% without further massive dilutive financings or they can go into bankruptcy and wipe all the common holders out while protecting their interests.
Not true. Restrictions on DTGI shares all have expiration dates that have mostly passed by already. Also, all you people are going off third party aggregation sites like Yahoo or OTC or even your own brokerage links to info sites. They all have badly outdated information. Most of these sites run about 6 months behind the real news which is found on SEC reporting sites in the form of required company filings like 8k and 10k. The trading float on this stock is much higher. Hell, tens of millions of shares this past year have been issued due to grants or conversion with no restrictions. Get your info straight!
On what basis? If you are basing your hopes on an OTC move you are dilutional. Stocks on OTC are not macro-market sector movers in general. Also, the OTC marketplace is dying. Virtually all brokerage houses and clearing firms are not interested in allowing customers to hold OTC stock in their accounts. Technology advancements, zero-fee platforms, and the high historic risk of fraud and abuse in OTC stocks have made them compliance nightmares and not worth the business. No magic move in the OTC marketplace is coming and it's up to the individual company management teams to perform and get off the OTC to a true more liquid market. that is not happening here anytime soon. These clowns can't even close a tiny acqusition over 14 months old.
Next pop? LOLS...where are the buyers? This stock hasn't had any significant volume and will not unless they get acquisitions done...now! Many people have a long way to go to break even. Most down 50%-85% from where they bought. So, bring it on. Wishful thinking is not an investment strategy.
That float number being reported on this OTC site is months and months behind. Much of the issued and outstanding shares are free to trade, making them part of the float. However, not much liquidity to the shares or places willing to hold penny stocks like DTGI in accounts.
Wow, another one. DTGI total outstanding shares were only around 20 million shares 15 months ago, now it's over 120 million. The float may have been around 14-15 million two years ago but it's nearly 110 million shares now. What stupid sources are you people looking at? Does anyone know how to read public company filings such as an 8k or 10k? This management team and conversions of convertible debt have increased the outstanding shares 500% in 15 months, all while the stock tanked from .25 cents to a low of .015 cents. It has recovered to its current range but management can't communicate well with the market and they can't seem to get any acquisitions financed and closed, despite being announced over a year ago. This is a problem because their organic growth is sub-par to competitors. This management team has enriched themselves with massive stock grants all while failing to deliver or execute. They also eliminated common shareholder voting rights and placed themselves in the same position as creditors with their move to newly issued preferred stock. All harmful and out of line with the interests of common shareholders.
So what? The 10k just came out and I'm entitled to express my opinion as much as anyone. DTGI has been a dead money stock and this team can't meet any of the deadline dates it sets for itself. 3-4% growth in this sector is a joke. Just look at the comparables, all of which are experiencing double-digit growth. This team must bring these acquisitions over the finish line or they are toast!
Wow, you are either an idiot, a fool, or can't read public company filings. DTGI has over 120 million shares outstanding, up 100 million over the last 15 months (massive dilution), not 14 million! Learn to read and stop telling your lies mister.
The filing of 10k had nothing to do with ongoing and unexplained delays in closing these acquisitions. The financing is being done at the subsidiary operations level, not the parent public company level.
This team can't seem to be able to finance a pickle on a hamburger much less an acquisition over a year old. All along the way enriching themselves with massive amounts of stock, diluting common shareholders, eliminating shareholder rights, and putting themselves into the same position as creditors, not aligned with their common shareholders. Their communication with shareholders and the market about these acquisitions has been horrible. Feels like the relationship with an old girlfriend who you knew was stringing you alone and breakup is imminent. It's getting frustrating and exhausting to hold this stock and trust this team.
Will this stock pullback to a better entry point?