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Technology Stocks : Digital Ally Inc. - DGLY
DGLY 1.620-4.7%3:56 PM EST

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From: David Alan Cook9/27/2010 9:16:16 AM
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BUY Rec - RJ Falkner Report Released - Target $7.50

rjfalkner.com

Digital Ally, Inc. (“DGLY” or “the Company”) is a technology-driven company that specializes in advanced digital video surveillance systems that are sold primarily to law enforcement agencies around the world. We believe 2010 will be a pivotal year for the Company, which is expected to generate record sales and earnings by (1) increasing its share of the market for in-car video systems and (2) introducing and effectively marketing several new products. When we last published a “Research Profile” report on Digital Ally (August 2007), the Company’s stock was trading at $2.40. DGLY shares subsequently rose 375% to a high of $11.40 in May 2008, before retreating sharply due to the 2008-2009 “bear market” and delays encountered by the Company when introducing a key new product that caused profitability to decline in 2009. We believe the stock is poised to again significantly outperform the overall market over the intermediate-term, as earnings recover to record levels and the Company significantly broadens its sales mix via contributions from new products. If our diluted EPS estimates of $0.20-$0.22 and $0.45-$0.50 for 2010 and 2011, respectively, prove realistic, we believe DGLY shares can rise 300% or more to the $7.50 area over the upcoming 15-18 months.
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