DIGITAL UTILS VENT (OTCMKTS:DUTV) Gets A Close Look

Today, we need to present one of the most exciting spikes seen in the OTC universe in 2018. We are talking about the increase in DIGITAL UTILS VENT (OTCMKTS:DUTV). The stock price commenced the year at $0.0006, and in less than ten days, it went up to touch the five-year highs of $0.036. Image taken from DIGITAL UTILS VENT OTCMKTS:DUTVBut, there is more. In January 2018, the number of shares that changed hands also increased as compared to the year 2017. More than 20 million shares changed hands some days. We believe that this feature shows that many in the market became interested in the stock.Check the following stock chart before we provide more details on this name: Two months chart for DUTVBusinessThe company was founded on June 13, 1991, in Delaware, and is now headquartered in Lauderdale, Florida. It operates in the radio and TV communications equipment sector.According to the materials released, DUTV through its subsidiary ‘Torq Communications, Inc.’ has designed a new efficient real-time video transport system that seems to offer better quality service than the present IP networks. The system is based on the MPEG-4 delivery multimedia integration framework and includes the following key features:

"- mpeg-4 dmif based terminal architecture- A robust and efficient packetization scheme for the mpeg-4 bit stream by using the resynchronization- Marker approach specified in the mpeg-4 standard- Efficient error control algorithms adopted at the end systems for visual quality enhancement." Source

This all is very technical information. Does the system really work?Yes, according to the company materials, the functioning of the system has been proven. Check the following text received by the market some time ago:

"The company has demonstrated our method in many parts of the world and results using the actual internet showed that our system is capable of utilizing the available network resource and achieve good perceptual quality at the application level. Over the last 5 years, the company has expanded its product offering to the television, mobile phone, and the computer." Source

What's going on with the share price? - We will assess the assets insideWe became interested in this name because the stock price reaction cannot indeed be justified by any new announcement released by DUTV. It is an enigma since the last news received by the market are from the year 2015.The team discussed several case scenarios. Have a look:

• The intangible assets may interest somebody in the telecom sector: It could be possible that somebody in the same industry has become interested in the intangible assets of DUTV. We went to check the last reported balance sheet and found as much as $167,075 in intangible assets. We saw that these assets are particular intellectual property, industry know-how, and goodwill that the company acquired from Torq Communications, Inc. Regarding the patents that the company may have, it was not confirmed from the documents given to the market.
• The accumulated deficit may also interest other market participants (loss carryforwards): The company has an accumulated deficit equal to $8,048,848. This means that if this company is merged with another one and reports positive income, the combined entity will pay fewer taxes. These accounting trick will be available until 2021 when the loss carryforwards commence expiring.

The social media - iHubWhen we don't know what's going on, it is always interesting to check the social media. Usually, other forum members operating in the market have the answers that we are looking for. That's not all; the number of comments can also show whether the expectations from the company are significant or not.In this case, we found that the discussion about the firm has been intense. Check, for example, the iHub forum: Social Media - DIGITAL UTILS VENT OTCMKTS:DUTVRegarding the positive comments that we could identify in the forum, we could read that the amount of shares available to short is quite low. This means that the usual short pressure in the stock is not present here. It does not say that the stock should increase, instead, if some demand for the stock appears, it could go up more easily.Have a look at the comment: No Shorts Available - DIGITAL UTILS VENT OTCMKTS:DUTVAdditionally, please note that the amount of short interest is quite low as compared to that of a few years ago. As of today, it seems that the short interest is equal to 12,832, while it was equal to 2013 356,488 on September 30, 2016. To sum up, short sellers are not here, or they have been closing their positions.ConclusionCurrently trading with a market cap of $12 million, DUTV is an interesting story among small caps. We believe that conservative readers will do best by following the stock, but forgetting about touching the shares. Other market participants looking for some adrenaline may look at the stock, but it is not the right thing until DUTV provides more recent information about its financial shape, the risk is high.On top of it, there are 3,409,654,798 shares outstanding and a very low float of 1,252,975,154. This means that volatility in the market could be very large, so the volatility risk will also be high.To sum up, follow this stock, but remember to study it closely before touching the shares.We will be updating our subscribers as soon as we know more. For the latest updates on DUTV, sign up below!Disclosure: We have no position in DUTV and have not been compensated for this article.Image courtesy of inna dee via Flickr