The recent share price movement of stocks of Digital Power Corporation (NYSEMKT:DPW) has confounded analysts and investors. The shares have seen a upward trajectory since the beginning of the month and even the New York Stock Exchange officials are said to be in contact with the company.
Any Sign Of Positive News?
Analysts and investors are a worried lot as there is no sign of any positive news about Digital Power Corporation (NYSEMKT:DPW) in the press. The segment of the company has also not witnessed any drastic changes over the past few weeks. Digital Power designs, manufactures and sells highly customized and flexible power systems solutions to several industry segments. Some of the solutions are used in telecom, military as well as industrial segments and the company concentrates on the European markets. The company’s wholly owned subsidiary, Digital Power Limited is into designing and manufacturing of power products and system solutions for the European marketplace. There are several positive factors that the company can rely on to improve its financial performance. The company supplies power systems to telecommunication giants; these systems form the heart of the infrastructure. Though the industry is not doing very well, Digital Power’s products will always remain in demand.
The volumes as well as the share price movement may indicate there is a strong possibility of some positive news being announced by the company. One of the segments, the defense industry has a lot of potential. The company supplies power management systems to the drone aircrafts. These unmanned aerial vehicles (UAVs) are being deployed by military across the globe. They also have several non-military uses. These are currently restricted. However, many companies are working on these uses, Amazon.com Inc (NASDAQ:AMZN) was looking at delivery of its shipments through drones. Thus, there are several possibilities in which Digital Power Corporation (NYSEMKT:DPW) can expand their revenue streams. However, there is still a dearth on any specific information or data relating to these developments.
The stocks of the company had breached their 52- week high on March 6, 2014 when they scaled up to $2.07 per share. The shares corrected after the drastic climb and are now trading at $1.55 per share as per the last trading data. The volumes are also very high, against daily average volumes of 135,104, 666,849 shares changed hands on March 14, 2014.