Well i think that the market cap is currently sitting under the value of the assets they have so one could say that it was undervalued at its current price. I also think that debt would probably become an option once the are covering overheads and that I expect is their first priority.
My concern right now is that with Covid-19 underway that its going to lead to a huge drag on what were already slow colo sales. Salaries seem to be really high when you look at the quarterlies, not to mention what they are spending on travel. I hope there will be some cost cuts and expect that they will have to be made.
I dont think it takes much to right this ship. At least Sydney is done and they seem to be making a few sales with the modules business. Whats crucial now is that we start seeing consistent sales come through. It was good to see board changes I suspect shareholders stepped in. It was not good to see one of the original directors stick around however, they should have removed everyone who was there at formation. I think they did a shit job of it and its reflected in the share price and the poor manner in which they have handled disclosures and announcements.
Im probably going to participate in this raise given the price and options, have just not decided what i will throw in yet. The stock is basically being given away and its a gamble but one that might pay off a bit and help recover whats been lost already. The potential is still there, pity the execution has been diabolical.
DXN Price at posting:
1.6¢ Sentiment: Hold Disclosure: Held
