3SOF

ONLY 1.5M FLOAT....WILL EXPLODE AFTER EARNINGS NEXT WEEK IMO.

DGSE will announce record financial results next week according to comments made by the CEO at the time 3Q results were announced in November 2005.


DGSE HIGHLIGHTS:


FLOAT: 1.5M SHARES
MARKET CAP: $9M
2005 REVENUES: ABOUT $30M
NET INCOME FIRST 9 MONTHS OF 2005: 8C/SHARE


DGSE is an undervalued low-floater completely under the radar. DGSE is consistently profitable and about to report record revenues and net income in for 4Q 2005.

DGSE's CEO said this about 4Q 2005 when it announced its 3Q 2005 earnings results:

We are very enthusiastic about the fourth quarter and expect both revenues and earnings to significantly exceed last year's results." BTW, Last year 4Q results were a record at the time.

Here is a glimpse of DGSE consistent and strong financial performance not including a 3Q 2005 that was also profitable:

http://finance.yahoo.com/q/is?s=DGSE


ABOUT DGSE:

DGSE Companies, Inc. wholesales, retails and auctions fine watches, jewelry, diamonds, precious metal and rare coin products to domestic and international customers through its Dallas Gold and Silver Exchange and Charleston Gold and Diamond Exchange subsidiaries, as well as through the internet. DGSE also owns Fairchild International, Inc., one of the largest vintage watch wholesalers in the country. The Company's Consumer Finance Division operates two pawn operations in Dallas, Texas, and three American Pay Day Centers in New Mexico. In addition to its retail facilities, the Company operates live Internet auctions which can be accessed at www.dgse.com. Real-time price quotations and real-time order execution in precious metals are provided on another DGSE web site at www.USBullionExchange.com. Wholesale customers can access our full vintage watch inventory through the restricted site at www.FairchildWatches.com


 

DGSE is starting to trade at a higher pps and volume than usual. These low-floaters can trade millions of shares in a day. That usually makes them jump big time.

DGSE will report record earnings next week. Radar it

$10M MARKET CAP....$35M REVENUES...PROFITABLE

DGSE Companies, Inc. Announces Record Revenues of $35,639,571 for Fiscal 2005

Friday March 31, 9:30 am ET

Net Income for the Fiscal Year Increased 38.3 Percent to $485,212 or $.10 Per Share

EBITDA Increased 21.9 Percent to $.24 Per Share


DALLAS--(BUSINESS WIRE)--March 31, 2006--DGSE Companies, Inc. (Nasdaq:DGSE - News), which wholesales, retails and auctions fine watches, jewelry, diamonds, precious metal and rare coin products via traditional and Internet channels, today announced operating results for the year ended December 31, 2005.
Earnings

Basic and diluted earnings per share for Fiscal 2005 were $.10 versus basic and diluted earnings per share of $.07 per share in fiscal 2004. Net Income s increased 38.3 percent to $485,212 from $350,829 in fiscal 2004
Fourth Quarter 2005 basic and diluted earnings per share were $.03 versus a loss of ($.01) per share in the Fourth Quarter of 2004
Revenues

Total Revenues for Fiscal 2005 were $35,639,571. This represents a 24.43 percent increase over Fiscal 2004 Total Revenues of $28,642,217.
Total Revenues for the Fourth Quarter of 2005 were $14,843,535. This represents a 59.2 percent increase over Fourth Quarter 2004 Revenues of $9,318,246.
Performance Metrics & Liquidity

EBITDA (earnings before interest, taxes, depreciation and amortization) was $1,188,086 in 2005. This represents a 21.9 percent increase over $974,647 in 2004.
Shareholders equity at year-end 2005 was $6,071,128 or $1.23 per share. This represents an increase of 8.6 percent versus $5,590,586 or $1.14 per share.
"Fiscal 2005 was an important investment year for DGSE," noted William H. Oyster, President and Chief Operating Officer of DGSE Companies, Inc. Mr. Oyster continued, "We invested significant capital in our expanding PayDay business as well as additional significant capital in our new facility in Charleston, South Carolina. While these investments were expensed as they were incurred and thus constrained 2005 results, we expect the benefits of the investments to positively impact results in Fiscal 2006. Additionally, our investment in the expansion of the capabilities USBullionExchange.com has already significantly increased both our precious metals and rare coin businesses. During the Fiscal year, DGSE also increased our portfolio of internet domains to over 500. This valuable portfolio now includes, among others, variations of Gold and Silver Exchange and Gold and Diamond Exchange for every State in the United States as well as a long list of major metropolitan areas. We continue to explore interesting opportunities for expanding our core businesses. Our financial metrics continue to improve with shareholders equity growing, revenues expanding and our revenue sources continuing to diversify. We expect our earnings growth to accelerate in 2006."


DO YOUR DD

DGSE $2.7...RECORD EARNINGS AHEAD ..$45M REVENUES...$13M CAP..TO DOUBLE REVENUES!!!!


My target: $4+ after 4Q earnings release.

DGSE Will double revenues to $100M with January 2007 acquisition of Superior Galleries for 3.7M shares of DGSE stock. The combined company will have about 10M shares with insiders owning about 90% of the total outstanding shares.

My 12-month target: $10


DGSE, pre Superior Galleries merger, has already exceeded the total revenue and net income for all of 2005 in the first 9 months of 2006. And the biggest quarter of the year will be announced soon.

DGSE retails and auctions fine watches, jewelry, diamonds and precious metal and rare coin products via traditional and Internet channels, and makes consumer loans through pawnshops in Dallas, Texas and Pay Day stores in New Mexico.

Early this month DGSE reported that ended up up paying a lot less than originally reported for the acquisition of Superior Galleries. Superior Galleries will double the revenues of the combines company to about $100M/year. DGSE only paid a total of $3.7M shares for Superior with revenues of about $50M/year. And most of these shares will remain in the hand of insiders and a financial institution that accepted DGSE shares for Superior's LT debt. Insiders, including the financial institution will own a combined 90% of the new DGSE.

Superior Galleries, Inc. sells rare coins on a retail, wholesale, and auction basis in the United States. It also provides auction services for customers seeking to sell their own coins. The company markets its services through broadcasting and print media, and independent sales agents, as well as on the Internet through third party Web sites, such as eBay, Overstock.com, and Amazon.com; and through its Web site at SGBH.com. Superior Galleries was founded in 1977 and is headquartered in Beverly Hills, California. Superior Galleries traded as high as $6/share 2 years ago when it was profitable.

DGSE intends to add its line of fine jewelry and watches, gem stones, and gold jewelry components; and custom jewelry in Superior's large Beverly Hills store. The combined synergies could turn DGSE into a huge cash cow in 2007 and beyond. I expect the stock value to appreciate significantly in months ahead. Achieving a reasonable P/S valuation of 1.0 would yield a $10 PPS later on this year IMO.

DGSE announced in October 2006, record earnings and net income for the first 9 months of 2006. DGSE just ended its biggest quarter of the year on December 31. The 4th Quarter is likely to yield record quarterly revenues and net income. 4Q and FY 2006 will be announced shortly and this stock will likely explode when the results are out.


2006 Earnings highlights:

* Record Revenues of $31,876,000 for the First Nine-Months of Fiscal 2006

* Revenues increased by 33% to $9,608,950 for the Third Quarter of Fiscal 2006.

* Net Income for the first Nine-Months of 2006 were up 64% to $.11/share

* Shareholders' equity at the end of the second quarter of 2006 was $6,604.754 or $1.34 per share. This represents an increase of 11.2 percent versus $5,940,644 or $1.21 per share as of September 30, 2005.


From the 3Q 2006 earnings release:

"..The fiscal third quarter marked the continuation of the outstanding performance of our core businesses," noted William H. Oyster, President and Chief Operating Officer of DGSE Companies, Inc. Mr. Oyster continued, "Our precious metals and rare coin businesses continue to enjoy robust activity and drive customers to our other business activities.

.."Revenues from the internet exceeded $2,700,000 in the first nine-months of 2006 up from $576,000 in the first nine-months of 2005. Our jewelry and watch sales continue to make DGSE one of the largest wholesalers and retailers in the United States. We are very enthusiastic about the coming holiday season and expect all of our segments to contribute to a successful fourth quarter."

Do your DD

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