DPW Holdings Inc (NYSEAMERICAN: DPW) is headed up in the pre-market this morning after what is being called the inaugural letter to shareholders was released. In the letter, Chairman Milton “Todd” Ault, III, who is currently serving as CEO as well, provided an update on the company and its history. The letter seems to be leading to excitement among investors as the stock is headed for the top early on this morning. Today, we’ll talk about:
- The letter to shareholders;
- what we’re seeing from DPW as a result; and
- what we’ll be watching for ahead.
DPW Issues Inaugural Letter To Shareholders
As mentioned above, DPW is having a relatively strong start to the trading session in the pre-market hours this morning after the company issued a letter that was written by Chairman and acting CEO Milton “Todd” Ault, III. In the letter, Ault reviewed a bit about the company’s history, some financial data, and closed the letter off with strong words, leading to excitement among investors. If you haven’t had the chance to read the full letter, click here to do so. Ultimately, the letter seemed to be aimed at comparing DPW to activist investors, saying that the company is looking to take on the same type of roll. Here’s how Mr. Ault closed the letter to shareholders:
I am concluding this letter by identifying a few public companies that you can take a look at, so you can understand what we are attempting to do. Clearly Berkshire Hathaway, Liberty Media and Icahn Enterprises are those that invest in a similar way. I am not claiming to be Warren Buffet, and I am not claiming to be Greg Maffei or John Malone, however, the business that best encapsulates what I am trying to do for the DPW is Icahn Enterprises. The activism, the ownership of either large portions or complete ownership of the operating companies and the investment style all fit what I am striving to do for DPW and its shareholders. No, I am not Carl Icahn, nor will I ever be like Carl Icahn, I am not claiming that, but the lessons taught by him and all the other great investors are all summed up in those few companies that I admire. I hope this gives you some insight so you can understand my mindset and my thoughts. Know that there will be new mistakes made but I will rise and learn from those while making every effort to treat all the shareholders as partners.
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 it’s important to keep a close eye on the news. After all, the news moves the market. In this particular case, the news surrounding DPW Holdings was positive. At the end of the day, any communication outlining clear motivation and goals among management will generally lead to excitement. So, it’s no surprise that the stock is making its way for the top in the market this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:44), DPW is trading at $1.04 per share after a gain of $0.045 per share (4.50%) 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 company’s work to try and become like one of these large activist investors. Will it happen? Who knows! Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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