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DSG GLOBAL, INC. (OTCQB – DSGT - $0.1999)
Industry: Diversified Tech
Segments: EV, Fleet Management
DSG Global is an emerging global technology company with an array of interconnecting businesses in some of the fastest growing market sectors. With roots in the golf industry in which it specializes in fleet management with patented analytics, mobile touch screen engagement and electric golf carts under the Vantage Tag Systems (VTS) brand, the company is moving quickly with road-ready electric vehicles for sale in the third quarter of 2021 through its Imperium Motor Company subsidiary.
DSG Global, Inc.
Recent News Affirms our Thesis that the DSG EV Model Offers Low Risk/High Upside.
DSG’s core model leverages its exclusive North American rights to sell a broad lineup of EV vehicles from multiple manufacturers. This low-risk approach substantially reduces capital costs by tens of millions of dollars as the production risk cost is eliminated. In contrast, EV darling Lordstown Motors may never produce and sell a meaningful number of vehicles after it was reported that the Company may not continue as a going concern in a year’s time, due to large, accumulated losses, low cash on hand, and significant future costs owed vendors.
Flawed EV Model Favors Investor Shift to DSG.
It is possible other, smaller, EV manufacturers may suffer the same fate as Lordstown and at best not come close to meeting production goals or at worst shutter their own facilities. In our view, the EV space is primed for continued outsized growth and will remain in demand and in favor in the capital markets. However, if other “producers’ shoes drop” in a similar fashion, savvy investors may seek out superior models and companies such as DSG that offer strong top-line upside without the associated capital costs that have historically crushed US automotive manufacturers from time to time.
DSG Offers Two-Source Potential Stock Upside. As noted in our May Trade Alert, we believe that DSGT could substantially benefit from its expected up-list to NASDAQ. Due to the Lordstown saga, DSGT’s stock may also enjoy additional gains due to intra-sector stock accumulation as investors swap one peer’s stock for another.
We believe DSGT could reach the $0.50 - $0.60 mark pre-up-list, a major premium to its closing price. This range is based upon a high-level view of potential EV sales, peer valuations, and the impact of catalysts such as potential investor migration due to the Lordstown issue and the Company’s grand opening later this week.
Senior Analyst: Robert Goldman
Rob Goldman founded Goldman Small Cap Research in 2009 and has over 25 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.
I, Robert Goldman, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.
This Opportunity Research report was prepared for informational purposes only.
Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research and Goldman Opportunity Research. The Select format reflects the Firm’s internally generated stock ideas along with economic and stock market outlooks. Opportunity Research reports, updates and Microcap Hot Topics articles reflect sponsored (paid) research but can also include non-sponsored micro-cap research ideas that typically carry greater risks than those stocks covered in the Select Research category. It is important to note that while we may track performance separately, we utilize many of the same coverage criteria in determining coverage of all stocks in both research formats. Research reports on profiled stocks in the Opportunity Research format typically have a higher risk profile and may offer greater upside. Goldman Small Cap Research was not compensated for this research note and was not compensated for its May 2021 trade alert. All information contained in this report was provided by the Company via filings, press releases or its website, or through our own due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.
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