Is DarkPulse (DPLS) Stock A Good Buy After The Big Jump?
If you are looking into the stocks which have made considerable gains in the month of June so far then it might be difficult to look past the gains made by the DarkPulse Inc (OTCMKTS:DPLS) stock.
Over the course of the month so far, the stock has attracted plenty of investors and has delivered gains of as much as 250%. In light of such massive gains, it could be a good move for investors to take a long look at DarkPulse. The main trigger for the remarkable rally in the stock came about back on June 8 when the laser sensing systems company announced that it signed two letters of intent regarding the acquisition of controlling stakes in two different companies.
One of those companies is Remote Intelligence LLC and the other is Wildlife Specialists LLC. However, it is important to keep in mind that both those companies are involved in the same line of business.
The companies offer drone based 3D mapping services for industrial application and primarily work with the oil and gas industry. The acquisition of controlling stakes in these two companies is strategic in nature and Kenneth Davidson, the Chief Operating Officer stated that they represent a ‘key piece of the strategy’.
The acquisitions are expected to help DarkPulse in offering more services to its clients and that is possibly one of the major reasons why the stock has rallied this strongly in June.
However, at the same time, it remains to be seen how DarkPulse progresses once the acquisitions are closed. Last month the Chief Executive Officer of the company Dennis O’Leary joined a popular podcast and spoke about the current condition of the company. He stated that recent a recent press release about a bridge funding worth $850,000 is merely in the planning process. He went on to state that it is going to offer more notes in order to take care of the company’s toxic debts.
88 Energy (EEENF) Stock Comes Back Strong: Time to Buy Now?
After having been in consolidation mode for some time, the 88 Energy stock has sprung back to life this week and this morning the stock has continued to record strong gains. The oil and gas company has gone up by 30% so far this morning and perhaps it is now time for investors to take a closer look at 88 Energy (OTCMKTS:EEENF).
Yesterday, it emerged that the company had reached an agreement to sell its tax credits in a transaction worth as much as $18.7 million. It may not seem like a large amount for many companies but for 88 Energy it is a substantial amount.
The company is going to use the proceeds from this sale for paying off its debts that amount to $16.1 million at this point in time. The rest of the $2.6 million is going to be retained by the company and help in boosting its cash reserves. Considering the fact that the latest transaction is going to help 88 Energy in strengthening its balance sheet considerably, many investors seem to be quite optimistic about the company’s prospects going forward.
The strengthening of the cash position is also an important development. In recent times, many investors had started worrying about the financial situation at the company.
In addition to paying off its debts and strengthening its cash position, this move is also going to save the company as much as $1 million in the form of associated finance costs. The figures may not be big but it is necessary for investors to keep in mind that the 88 Energy commands a market cap of only $265 million and hence these amounts are substantial.
Leverage can affect different companies in different ways; however, for 88 Energy the lowering of leverage to such a degree has caused considerable optimism among investors. It remains to be seen if the stock can maintain its momentum or not.