Ault Holdings' "little bit of everything" YOLO conglomeration and volatile price movement makes this an interesting penny stock to watch.
Research
Research
- TipRanks and MorningStar have no Analyst coverage on $DPW
- $DPW price dropped by more than half in the February 2021 sell-off and has been limping along since
- Short % of float per Yahoo is about 9%, smart money managers have been making money on this play until this past Friday when price rallied up to $3
- Largest non-index institutional shareholders are Esousa Holdings and Ault & Company (the Chairman's own company)
- (Con) Their legacy power businesses are stable but guidance for growth is small across Microphase, Enertec, Gresham Power, and Relec
- (Con) Coolisys' EV residential EV charging station is NOT available for pre-order on most retail sites like Newegg, Walmart, or Ebay
- (Con) Ault Alliance's data center play in Michigan is smaller than the press release would lead you to believe and most of the 700K square foot facility is already occupied by 7 existing businesses*
- (Con) Ault Alliance's crypto mining operations were shut down in 2020, that was short-sighted considering how high crypto prices have come
- (Con) Overall $DPW conglomerate could inadvertently become an "investment company" if 40% of its non-cash assets are investments in other companies, which would subject them to far more regulation and compliance
- (Pro or Con, can't figure this one out) Esousa Holdings is $DPW's largest shareholder with about 1M shares, Esousa appears to be a meme fund since it only has longs on $NAKD, $NETE, and $DPW
- (Pro) Coolisys landed a $10.5M order for 30K residential EV chargers and accessories through iNetSupply.com
- (Pro) Coolisys "ACECOOL" EV residential charging station is available for pre-order on Amazon
- (Pro) Ault Alliance's data center play and resumed crypto mining (by end of Q2 2021) could ride the crypto wave up assuming management does not decide to stop mining again
- (Pro) Chairman "Todd" Ault is the 3rd largest owner of shares, and he personally is acquiring more shares monthly at prices between $3.77 and $4.25
Risk Management
- $DPW is a penny stock conglomerate with non-trivial short interest, tread lightly!
- Does not correlate with $SPY or $QQQ but depending on mining operations could start moving with $BTCUSD
Technical Analysis
- $DPW price is below the 200-Day SMA but "broke out" over the 20-Day SMA on Friday Apr-30
- RSI at 54
- MACD histograms are trending up as stock price ramps upward
- +DI line crossed -DI line Thursday to Friday Apr-30 but ADX magnitude is relatively low
Summary
I won't sugarcoat it, $DPW is a volatile penny stock with a wide range of business interests and investments across many industries... this lack of focus would usually be a turn-off for me. However, $DPW's investment strategy has been profitable over the last few quarters and I believe that the cash raised by their Q1 2021 stock sale will be put to good use -- though the inadvertent classification as an investment company does seem like a real possibility. If the price trend holds this upcoming week I would be willing to enter between $3.00 and $3.15, and my upside price targets are (1) $3.75 (2) $4.35, and (3) $5.00.
*Look at the commercial property $DPW purchased for Ault Alliance's data center and mining operations via Coldwell Banker Homes here: www.coldwellbankerho...nde-st/pid_40189608/
**Data in the "Research" section sourced from TipRanks, MorningStar , WhaleWisdom, OpenInsider, and Seeking Alpha - $DPW price is below the 200-Day SMA but "broke out" over the 20-Day SMA on Friday Apr-30