September 1, 2010 | In: Services

DGIT: A Stock That is Rebounding

2 days ago, DGIT dropped to $15.02, a 3 year low, even after the company exceeded expectations. However, 2 things weighed greatly on the stock: A lowered guidance, and a possible lawsuit.

Now I have seen this many times, a lowered guidance will beat the stock to near death (remember GOOG), and then sound investors wake up, and start buying the stock. Yesterday the stock started its rebound and went up 4%. Today in the pre-market is the stock is up about 2%. I think the stock will close at $17 today.

A class action lawsuit, IF it materializes, is a totally different story, but until then, the stock is still largely undervalued, and even $17 is an excellent entry point.

The company fundamentals are great, and the EPS is 1.25, which means that the P/E is 12.60 at the current stock price. The stock was trading at $27.15 last Friday. What are you waiting for? This is an excellent bargain!

1 Response to DGIT: A Stock That is Rebounding


DG FastChannel Inc. (DGIT) – A Takeover Candidate? « Fadi El-Eter

January 26th, 2011 at 4:51 pm

[…] have previously written about DGIT, when it was way undervalued, and trading at around […]

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