Friday’s trading volume of over 46.2 million shares of DGMA was quite expected on the background of the previous action of the stock. The fact that DGMA stock has not recovered yet from its oversold status gives, however, a reason the believe that Friday’s session may not be the last one with price and volume pointing up.
The trading activity for DGMA started about a week ago with massive selling out that made the price drop dramatically. Shortly after that, the company attacked the market with a number of press releases about the launching of its so called VascoNow(TM) application, its new CFO and its new Indian marketing partner. None of this can be officially confirmed, but it provided shorters with enough of buyers, and with the chance to earn some speculative gains.
DGMA became a pick for shorters already on August 13 this year, which was the first day of active trading of the stock for the last three years. On that day, as well as on the two following days, the portion of shorted shares was over 70% of all the reported volume, which makes the surging up on the following three trading sessions look even more like blowing bubbles.
The company has not disclosed any kind of information about its current business activities. According to the one and only report submitted to the OTC Disclosure & News Service in the summer of 2008, since its incorporation in 1997 the main activities of DGMA have been to change its name and to issue shares of common stock.
As for the products of DGMA, even the press releases are unable to give investors an idea what the business model of the company actually is. It seems that through all the years Degama Software Solutions has been developing some unknown proprietary software technology with undefined applications, that obviously has not found a single user so far.
