>or is there something more to it?<
IMO the upward price movement in DLK is based on numerous factors. DLK seems to be significantly undervalued.......especially when compared to AETH and SVNX in the same area. Unfortunately, DLK made the move to the Nasdaq at just the wrong time....when having an IPO on anything that was a "dot.com" was no longer in fashion. (I think at the time they thought of doing a secondary offering, which with the market climate just didn't make sense.) The investment community seemed to go from "irrational exuberance" about Internet and start-up companies to "irrational pessimism". Any company without fantastic earnings, became a company to sell. (or short!) Growth companies also were no longer supported, and old economy companies seemed to be the only place to invest. Almost any company involved in the wireless area also became out of fashion, and seemed to be quickly dropped by many as possible growth stocks.
DLK seems to be a "well kept" secret....and not a company that many follow. (I think that will change in the future.) It takes a lot of time and research to fully understand the potential of this company. DLK has in the last year changed its' business strategy from B2C to B2B. AETH and SVNX are competitors....and have the financial backing of having an IPO to raise large amounts of cash in order to get their companies known in the business community. Despite not having an IPO, DLK managed to complete the Global Market Pro with Chase (rumored to be a product started with AETH...but completed by DLK.) Chase paid $30 a share for 800,000 warrants in DLK in exchange for Global Market Pro. (Chase must believe in the potential of this company!) DLK seems to have an advantage with its numerous patents, engineering staff located in Canada, and an "old fashion" management that seems to know how to make a profit. IMO the numerous agreements that DLK has made should make them profitable in the future. In some ways following DLK is like following ASTN....putting together "pieces of a puzzle"....that when you add it all together, makes sense.
There are a few analysts who follow DLK. Most of them have a share target price of $30-32 for DLK. The companies giving DLK a buy or strong buy are HC Wainwright, Wedbush, and CIBC. Recently a Taipan investment article listed DLK as a strong buy, with a $270 three year price target (maybe that started the buying?!?). I've posted another article about DLK on this SI board.
Message 15165434
Some who follow DLK feel that most likely the company will be bought out by another company for a $30-40 share price. Who knows!?!
Reading through the DLK press releases over the last few months gives some ideas of the potential for revenues for this company. datalink.net
The companies they have acquired are profitable companies, who will help build revenues for DLK through their established customers.
I believe in the future of wireless data.....and IMO this is a technology that makes sense and will save businesses money, so it won't be seen as "an extra" to be cut from the budget in hard times.
meandering situation where there may be more opportunistic entry points?
I don't know if there will ever be a more opportunistic entry point for either DLK or ASTN. Both have increased in price in the last few trading days, but both are no where near what I feel should be a fair share price. There may be some profit taking, but buyers may return who know the company, and sold earlier in the year when the market was having difficult times. Of course I could always be wrong....but both of these companies at these prices IMO are "a gift". I understand and have researched both companies...and understand the higher risk....with the potential for a very high reward for investing in an "unknown" company with enormous potential! I feel comfortable holding these companies.....and IMO both should have a much higher share price in the next few months.
Not to put any pressure on you
My two largest holdings right now are in DLK and ASTN.....I've really liked the last 10 days in the market!!! <g>
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