DPW Holdings (DPW) Stock: Gaining On Capital Structure Update

DPW Holdings Inc (NYSEAMERICAN: DPW) is flying early on in the pre-market this morning, and for good reason. The company announced changes to its capital structure, exciting investors and sending the stock on a run for the top. Today, we’ll talk about:

  • The recently-announced capital structure improvements;
  • what we’re seeing from DPQ stock as a result; and
  • what we’ll be watching for ahead.

DPW Stock Gains On Capital Structure Improvement

As mentioned above, DPW Holdings is having an overwhelmingly strong start to the trading session in the pre-market hours after announcing capital structure improvements. The announcement came via press release early this morning.

In the release, DPW said that it has reduced its total debt by $3 million so far in 2019. The company also said that it is continuing to work with creditors to decrease debt and improve its capital structure.

The capital structure improvements will continue as the company works toward its growth and profitability objectives for the year. These goals include decreasing debt, increasing revenue and profitability, and providing greater value for shareholders.

In a statement, Milton “Todd” Ault, III, CEO and Chairman at DPW, had the following to offer:

We are very pleased we were able to work with our lenders to resolve our liabilities and close the issues at hand. The Company remains dedicated to increase revenue growth, improve our bottom-line results and attain our stated goals for 2019. We are very pleased our creditors continue to work with us as we strive to improve our capital structure.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to DPW Holdings, the news proved to be overwhelmingly positive.

After all, we’re still very early in the year and the company has already extinguished $3 million in debt. This shows that it is aggressively working toward the goal of providing investors with a better balance sheet and increased value.

Considering this, it’s not surprising to see that the stock is making a run for the top in the market today. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:49), DPW is trading at $0.12 per share after a gain of $0.04 per share after a gain of 50.19% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on DPW. In particular, we’re interested in following the story surrounding the company’s continued work to reduce debt and expand revenue and profitability. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!

What Do You Think?

Where do you think DPW is headed? Join the discussion in the comments below!

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