NEW YORK, Sept 2 (Reuters) - Digital Ally Inc shares surged again on Tuesday, extending a recent rally after it clarified in a regulatory filing the comments by its chief executive officer of a “five-fold” rise in inquiries for its wearable cameras.
The stock soared 64.5 percent to $30.70 with more than 13 million shares changing hands at midday. CEO Stanton Ross told the USA Today newspaper on Aug. 28 that “inquiries have increased five-fold, conservatively, since Ferguson,” which would translate to a year-over-year sales increase of 26 percent.
The company said it has received massive interest in the aftermath of the fatal shooting of an unarmed black teenager in Ferguson, Missouri, with people viewing the wearable cameras as a means of making law enforcement more accountable.
In the filing, released on Friday after the close of trading, it said Ross’ comments were based largely on its “expectations, or forecasts, of future events” and there cannot be any expectation that it will “achieve the results forecast.” Still, the disclosure also helped fuel investors’ bets on the stock, which has been on a tear.
Since hitting a 52-week low of $3.03 a share on June 10, the stock has risen 866 percent, boosting its market value to $79 million from a mere $8.2 million that day. The meteoric rise has brought out short-sellers who believe the shares are too high.
As of Friday, about 16 percent of the outstanding shares were being used for short bets, according to data from Markit, up from 4.6 percent at the beginning of June.
The stock was thinly traded until a few weeks ago, in the aftermath of the shooting of Michael Brown in Ferguson.
In all of 2013, 8.87 million shares changed hands. In August alone, more than 103 million Digital Ally shares traded. (Reporting by Ryan Vlastelica and David Gaffen; Editing by Jeffrey Benkoe)