GSD - Why Is DarkPulse (DPLS) Stock Up 80% Today?
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One stock bucking the otherwise red trend in the markets today is DarkPulse (OTCMKTS:DPLS). Shares of this small-cap provider of advanced technologies surged more than 100% at one point today. At the time of writing, shares of DPLS stock are up approximately 80%.
This move follows an announcement from the company that it intends to list its shares on the Nasdaq exchange. Via a merger agreement with Global System Dynamics (NASDAQ:GSD), DarkPulse will ultimately take the name “Global System Dynamics, Inc.” and trade under a new ticker symbol, DARK.
This merger is expected to close in Q1 or Q2 of next year, resulting in DarkPulse being delisted from the over-the-counter (OTC) exchange. It’s expected the combined entity will be worth approximately $223 million and carry an enterprise value of $145 million, with more than $100 million in cash on hand.
Let’s dive into whether this stock should be on investors’ radar or not.
What’s Going on With DPLS Stock Today?
Any sort of up-listing announcement tends to garner significant attention among investors. Such is the case with DarkPulse today. A public listing improves a given company’s visibility, coverage and liquidity, providing investors with explicit benefits. Accordingly, some sort of bump should be anticipated on this news.
However, the fact DPLS stock more than doubled at one point today (actually surging more than 135% at its intraday peak) may indicate investors are a bit overzealous. This is an early-stage company focused on laser-based security management solutions. Though the company appears to be close to break even, it’s still unprofitable. And in this market, that’s clearly not what investors want to see.
That said, the company does have some significant growth catalysts worth considering. Its patents in a number of key technological areas are intriguing. Additionally, DarkPulse does have a segment focused on government business. That’s a dependable revenue stream some long-term growth investors want to see.
Perhaps this is the news the company needed to get some momentum. Time will tell. In many respects, this stock looks interesting, and I intend to follow it from here.
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On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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