Ann: Successful Completion of $120m Underwritten Placement, page-219

The problem is growth in what? After tax profit, shares on issue, EPS, revenue?

Sooner or later every company has to start making a profit otherwise it dies. If it makes it to profitability then what the market starts looking at is EPS. The problem for DRO is the PS (per share). DRO bas gone from 400 million shares to nearly a billion shares on issue in the blink of an eye.

When one starts looking as the earnings side of it, that means that DRO needs to have a profit of $100 M to achieve a measly 10c per share earnings. It'll be lucky to have revenue of $100 M this year, and is nowhere near that kind of profit. Furthermore Oleg is announcing spending on lots of new products, so that is also going to chew into earnings. Not to mention that an awful lot of unexpected things could happen between now and $100 M and some of them could derail DRO. It looks like the market is finally putting the pom-poms away and starting to look at the scoreboard.

It is capital management that is hammering DRO - if you want to see what the market thinks of CRs, have a look at what happened to HCL's share price after it announced today that it would not require a CR that the market expected.

I'm with you on the growth stocks bit, but growth is expensive and hard, and dilution is the last thing shareholders want. DRO has diluted itself out of being a stock capable of huge share price growth. There are far better growth stocks around - the ones I like are WTC, AL3, 360, and maybe 3DP as a bit of a spec if one is brave. None of these stocks seem to have the revenue growth of DRO, but management is not pillaging those companies and they're careful with dilutions.