Digital Ally (DGLY) is due to report earnings on May 14 and the stock is popping out of a volatility squeeze today. The Kansas-based company makes digital video imaging products that are integral to the body cameras that every police officer in America is destined to wear.
This daily chart shows the stock trading right around the $15 mark and very close to the 50-day moving average. But today's breakout is on heavier-than-average volume. With about 25% of the float short, I think the bears might be getting nervous about the $20 million that the Department of Justice just announced will be going into buying technology that is made by the likes of Taser International (TASR) and Digital Ally.
Once the Feds get involved, the pool of money knows no depths. It is infinite. Of course, $20 million is just a fraction of President Obama's proposal to invest $75 million over the next three years to buy 50,000 cameras. There are more than 900,000 sworn law enforcement individuals in this country, so look for that $75 million proposal to ultimately expand a bit more than a few bucks.