The $33M deal led to an increase in share price from about 25c to the current 30c. Why would the next one lead to an increase of 4 times the size.
It seems to me that another deal of that size is needed to maintain the share price. The numbers for this year will be much improved on the back of the $33M deal. They need at least one of those for next year to maintain their sales from 2023 to 2024. Growth companies that don't grow get hammered.
Hopefully, those deals do come through and sales continue to grow. But a lot of future growth is already priced in and my guess is that DRO needs at least 30 percent YTY sales growth to drive the stock. This is particularly true when the company itself is attempting to hype the stock with the 5 year target that it has again foolishly repeated. They can tell us 5 years out but not next year? That reeks of management credibility issues. Based on that, most serious investors will be conservative and base their valuations on what they have delivered in the past and ignore dreams of big growth.
DRO Price at posting:
30.0¢ Sentiment: Hold Disclosure: Held
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