DGSE
Bought a little DGSE over the last couple of week in the .96-.97 and lower range, tiny position, but here is what I like.
1) DGSE is executing a massive turnaround here, and last quarter although not indicating cheap, was a step in the right direction at .022, I expect further improvement going foward especially in q4.
2) DGSE lost in the shuffle generally q4 is a seasonally strong quarter specifically for the jewelery business which is actually a higher margin segment, so I wouldn't be surprised to see earnings of .03-.05, which should pop it into the mid 1's.
Conclusion: Admittingly i'm looking at DGSE as a trade for q4, their jewerly business is now doing real well this year and q4 is generally there best quarter, hence I expect a jump up in earnings in q4 from q3 levels. Time will tell, there are risks with this one like any turnaround play. Time will tell If I'm right. All is just my opinion, and I could always be wrong though.
