Diversified Global Holdings Group, Inc. DGHG
DGHG made a nice move at the time of our first mention, and subsequently came down to find support at a dollar. We like this company a lot, and there have been several developments in recent weeks to strengthen our resolve in calling this a long term opportunity.
Value Could Approach $2.00+ per Share based on these facts and figures:
- Diversified Global recently reported $203M, an equivalent of $2.33 per share, in shareholders’ equity, which means that the current stock price is trading roughly 100% lower than actual valuation.
- Excluding land, equipment and the like, DGHG’s total assets are around $0.38 per share, which represents a fairly significant percentage of the share price.
- Diversified Global recently reported bottom-line growth rates of 256%, according to the latest 10-Q.
- The company reduced its share count last quarter by 6.7%, and only recently retired another 12%, indicating the company’s dedication to building shareholder value.
All in all, 1.09 per share seems like an absolute bargain.
Side Note:
We urge our readers to take a look at the Opportunist Magazine Wall Street Journal Edition online, if you would like to receive paper copies by mail, fill out the form on this page. The magazine’s October Edition features our repeat play, Dinewise, Inc. DWIS, and our one-time play, Global Entertainment Holdings GBHL.