Replies to post #2 on DG FastChannel (DGIT)

[jimmenknee]

Me too Mojocash :-) I am of the opinion DGIT is a relatively good risk:reward short-squeeze candidate...

Float: 26.19M
Short Interest: 4.725M = 18.04% as of 8/13

Assume 8/31 report will show an increase Short Interest equivalent to the avg of the last 5 reports: 21.67%
Short Projected = 5.749M
Short % of Float Projected = 21.95%

I actually believe it will be considerably higher based on the 8/31 activity/volume...

Float Analysis:

Ticker TOR    	Float      	 8EMA     	 WF          	EF          	EF %  	% Short Ratio       
 DGIT	22.03%	26,190,000	5,770,000	18,671,720	48,882,563	186.65%	18.08%	3.80 
 Day:	9.66%	26,190,000	2,530,000

When the Effective Float is > 100% of the Reported Float, there is an equity issue-- Naked Shorts or Dilution are the typical culprits.

Here's a nice write-up that lays out the fundamental table: http://seekingalpha.com/article/223311-short-term-woes-create-a-compelling-case-for-dg-fastchannel?source=yahoo

Company has no debt, lots of cash, presently trades at book value and at a paltry 0.39 PEG: http://finviz.com/quote.ashx?t=dgit&ty=c&ta=1&p=d

Company authorized a $30M Share Buyback: http://www.sec.gov/Archives/edgar/data/934448/000110465910046453/a10-16572_1ex99d1.htm

Options consideration Sept $17.50 Calls (Expire at close Friday, September 17, 2010):

Last Chg Bid Ask Vol Open Int  
 0.35 0.00 0.30 0.40 315 2,046  
 Price  Rho  Vega  Theta  Gamma  Delta  Implied Volatility     
 0.38  0.00  0.01  -0.02  0.16  0.29  65%

Combined with the Pincher TA setting up and a few favorable economic/market snippets to fill the sails, this cud run well...

Money Flow TA-wise is tracking as I would hope-- looking for PVO constriction/cross (black to red) against a continuing 3 Period up-cycle in the CMF and MFI along with ChiOsc (Money Momentum). I'm speculating the 2nd MFI 3 Period up-swing should tell the short-term tale (pun-intended lol).