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NEW YORK (TheStreet) -- Digital Ally (DGLY) - Get Digital Ally, Inc. Report was gaining 10.6% to $15.49 Monday after announcing it received more than $600,000 in orders from the Mexican Federal Police.

The company announced it received purchase orders from the Mexican Federal Police for the refurbishment of DVM-500 and DVM-500Plus In-Car Digital Video Systems, which includes the purchase of spare parts for the unites. The Federal Police has more than 4,500 DVMs in its fleet of law enforcement vehicles, and is Digital Ally's largest customers in terms of DVMs deployed.

"We anticipate that such program will involve most if not all of the 4,500 plus units in its fleet," Digital Ally CEO Stanton Ross said in a statement. "We expect to receive Purchase Orders for additional tranches throughout the balance of 2014 and 2015."

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The company expects the full refurbishment program will be completed in the next 12 to 18 months.

TheStreet Ratings team rates DIGITAL ALLY INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate DIGITAL ALLY INC (DGLY) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally high debt management risk."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • DIGITAL ALLY INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, DIGITAL ALLY INC reported poor results of -$1.14 versus -$0.99 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 1376.1% when compared to the same quarter one year ago, falling from -$0.07 million to -$0.99 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, DIGITAL ALLY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$0.60 million or 459.81% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • In its most recent trading session, DGLY has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • You can view the full analysis from the report here: DGLY Ratings Report

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