DCC has surprised me on their announcements, pretty much all the time. Down to the Zhenya's indictment announcement.
Their handling of his share was also a surprise as they
1) de-risked themselves but obtaining Zhenya's share off the table at almost scratch price
2) Got an insto on board which is +
3) Wipe shares off the registry making us tighter structurally
I think Leigh did a lot of work there with his connection and knowledge on that side of business.
These guys knows the market very well. They might not be the most fintech based company out there, but they know how to manouvre around market. Look at their announcements, their choice of words. It's been all to indicate (on target, positive, things in pipeline, optimum results, expectations) upward movements.
So on that regard, they know very well to surprise us with this next announcement and although it's been in the pipeline, we might see some re-rating with short term speculators coming aboard. DCC's narrow window on their product is nearing the end of speculation cycle and right now they know they have to deliver otherwise their cash kitty wont help them through this year.
That being said, compared to other prospects in market, there's really not much of a peer valuation. I do think 20 million will be on the low side, and if they can hit a conservative download figure of say 20-30 thousand year end, get remittance rolling (which they have hard committed), SP should double from this point.
However, I do know there are a truck load of trapped buyers from higher end speculating that initially this will explode. rough reality. Won't happen. I'll be happy with 25-30 million in 2-3 months. Anything more's a gift.
DCC Price at posting:
10.0¢ Sentiment: Hold Disclosure: Held
