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Why Digital Ally May Get More Orders From The Gov't

BY JAMES DETAR, INVESTOR'S BUSINESS DAILY

02/23/2015 12:51 PM ET


Digital Ally (NASDAQ:DGLY) shares shot up as much as 30% early Monday before moderating gains, after the wearable camera maker announced that it has been awarded GSA status by the federal government.

The General Services Administration is the federal government's primary purchasing agency. Receiving GSA status not only gives Digital Ally preferred vendor status for federal contracts, but raises the likelihood that it will receive more state and local government contracts.

Shares were up about 14% at 12.61 in Monday trading on the stock market today, retaking their 50-day line for the first time since early January.

The GSA status award comes amid increasing competition among wearable camera makers, who are moving into each other's markets to gain new customers.

Lenexa, Kan.-based Digital Ally competes with Taser (NASDAQ:TASR) and, recently, with sports camera maker GoPro (NASDAQ:GPRO) in selling cameras worn by law enforcement officers to record field situations.

Use of digital wearable cameras by police agencies, including those in Los Angeles and New York City, skyrocketed in the wake of recent high-profile shootings of unarmed suspects.

Digital Ally also sells cameras for in-vehicle use and earlier this month filed for a patent related to a breath analyzer system and computer program for preserving breath analysis data.

GoPro mainly sells cameras to sports enthusiasts to record epic surf rides, ski runs and such. But it's also entered the law enforcement market.

It may get competition in its flagship sports market from Digital Ally, though. Reuters reported last month that Digital Ally CEO Stanton Ross said the company might have that type of camera ready for a "soft launch" by the third quarter.


Read More At Investor's Business Daily: http://news.investors.com/business/022315-740418-digital-ally-shares-jump-gsa-award.htm#ixzz3SmVPVhE9
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