It is odd that people are purchasing Damstra at the offer price - and I note the volume of purchases was significant last week. Overall, I believe Damstra has excellent long-term value (which is why Ideagen is purchasing it). Damstra is developing a SaaS product in a market that has huge potential. Many smaller IT companies are out of favour at the moment. That is particularly the case with Damstra due to them failing to meet market expectations a number of times. However, Damstra has been a turnaround story and was free cashflow positive in Q4 23 and had positive operating cash flow for every quarter of FY 23.
No surprises that a number of companies were evaluating Damstra recently. Let's hope one of them comes out of the woodwork and makes a counter offer this week. Do your own research but I believe the offer price of 24 cents is below the true value of Damstra and I hope to see a counter offer or to hold these shares for longer term gains.
DTC Price at posting:
24.0¢ Sentiment: Hold Disclosure: Held
