DSEN got clobbered last week just like brethren KAL and HESG. And once again- it was a one day, one trade anomoly. The stock traded about 130,000 shares in a couple of trades and just dropped out of the sky.
I continue to believe last week’s wierd trading activity was associated with the REVCO disaster. When that much cash is pulled out of the market in a short span of time, there is signficant fall out in many places.
I checked with the management at DSEN, and they are on track to deliver record quarters for both September and December, so fundamentally the picture is getting better.
Just like with BPTR, you have to go back to one year ago today to see the stock at this level. And just like with BPTR, if you had bought it one year ago today at the current level, you would have made a substantial return on your investment over the ensuing three months.
Once again, the traditional 4th quarter rally is critical. If it is going to come this year it had better get started soon. It has been one of the ugliest Octobers I can remember.
I believe the stock is a screaming buy at current levels. It require two C’s- courage and capital, and I’m not sure which is more important. Fortune Favors the Bold.
Questions and comments are welcome.
Referring to your two latest postings about DSEN – does the market cap calculation need amending to account for the prospectus filed Oct 11th (on SEC EDGAR site) detailing convertible and warrant conversions? As far as I can see the share count is going to increase a lot from 17.2m if these happen.
Editor: Yes- at some point down the road. However, it will happen over 39 months, and the company has the option to pay in cash. If this is the case, there would be no dillution.
Subject to the price restrictions, I make the dilution about 150,000 shares per months. I am going to recheck those numbers. Also, I believe minimum dilution occurs as long as the stock is over $.30, which seems like it should be easy enough.
Any update on DSEN? The stock has traded very thinly with zero shares trading today. I am surprised the stock hasn’t fallen with so little activity. Am I correct in thinking that any good news might set this one off?
Editor: The company has been quite quiet of late, but at the corporate level they are doing very well. They had their highest level of profit and revenue in their history in November. They will be out with a lot of events in the coming year, and I would hang in there and wait for them to get more vocal.
What has been going on with the company? Volume has been frightening low and the company has been quiet.
Editor: The company is kicking butt on the fundamental side, but hasn’t had much to say. It will pick up after the year ends.
Have dropped coverage on DSEN? It is now up nearly 40% from October 05. Any thoughts on the financials and more importantly, where do you see a stop loss? RBM
Editor: Yes, I announced it several editions ago. I simply never get any information from the company, although I hear they are going to have a good year. I won’t be covering it, so if you want to, just go ahead and sell it.
DSEN has been surging on higher volume. I have sold most of position at 47% gain since one of your entry points. Will you continue to update on this one? I am looking for another entry after this current surge calms down.
Editor: I announced some time ago that we wouldn’t be covering it anymore, mostly because the company never gave us any developments to cover. Anecdotally, I hear the company is doing quite well, and the way the stock is trading would bear that up. However, the shares from their 2005 financing have not hit the market yet. It could have a negative impact on share price when they do. If you still hold a few shares, you might want to keep them for the long term. Nothing wrong with the way this stock has treated you.