Anyone buying DGSE? Popped up to $1.68 last week on a great Q3 report. Now sliding back to $1.42. I'm rebuying the shares I sold last week. Has some hair but worth a shot imo. I think this one could get a run to new 52-week highs in the coming months with that terrific Q3 comp sitting there.
DGSE reported Q3 earnings of .04/share vs. a loss last year. Their highest quarterly profit in 10 years! Q3 revenues up 60%. Looks like the new acquisition has much better margins, and is why they had such strong earnings. Maybe the revenues/margins on the new acquisition were unusually good in Q3. We'll see. But at least the acquisition will help boost the top & bottom lines for the next 2 quarters. Should give DGSE some favorable comps. Heading into the seasonally stronger quarters for their traditional jewelry business too.
Thought this was interesting from the 10Q. Looks like DGSE will be changing its name soon. Not that the news would spark a huge run, but I think buyers will be more likely to buy the stock of a company called Envela rather than DGSE. I'm guessing there be more acquisitions in the works as well.
(16) Subsequent Event
At the Company’s annual stockholder’s meeting, held October 11, 2019, a proposal to amend the articles of incorporation was passed, which included changing the corporate name to Envela Corporation and creating a class of preferred stock in the amount of 5,000,000 shares.
