DPW Holdings Inc (NYSEAMERICAN: DPW) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced that one of its wholly-owned subsidiaries has entered into an agreement to form a joint venture. Of course, the news proved to be exciting to investors who are sending the stock on a run for the top. Today, we’ll talk about:
- The joint venture;
- what we’re seeing from DPW as a result;
- and what we’ll be watching for with regard to the stock ahead.
DPW Heads Up On Joint Venture News
As mentioned above, DPW Holdings is having a strong start to the trading session in the pre-market hours after announcing news related to a joint venture. In a press release issued early this morning, the company announced that Digital Power Lending, its wholly-owned subsidiary, has entered into an agreement to form a joint venture. The new joint venture will be called Innovative e-Payment Solutions and was entered into with QPAGOS. QPAGOS is a provider of consumer payment and financial services in Mexico.
In the release, DPW said that the two companies will work together to launch a network of 1,000 self-service kiosks starting in California over the next 12 months. These kiosks will provide customer payments with an ability to enter transactions with more than 10,000 vendors, utilities and service providers and other payment accepters throughout the ecosystem. At the moemnt, there are less than 1,800 ative kiosks in the United States that provide similar services, including the ability to purchase cryptocurrency. In a statement, William “Bill” Corbett, President, CEO at the DPW subsidiary, DPL, had the following to offer:
We are thrilled to be able to partner with QPAGOS in the initial launch of one of the most sophisticated kiosks in the world. The ability of Digital Power Lending to participate in both the selling of our cryptocurrency and the money remittance business with Mexico is a very compelling opportunity for DPW Holdings and its shareholders. We look forward to building this business in Souther California with a proven management and technology team at QPAGOS.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of DPW. The news proved to be overwhelmingly positive. With the new joint venture, the company will be opening the door to yet another stream of revenue. So, it only makes sense that excited investors are sending the stock on a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:34), DPW is trading at $0.68 per share after a gain of $0.038 per share or 5.91% 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 new joint venture and the revenue it may create. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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