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23.5¢ damstra holdings limited

I think you are pretty spot on. Capital raising is highly likely...

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EDDYDudes

258 Posts.

69

04/11/21

05:06

Post #: 57299899
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Originally posted by interested6: ↑

I thought it was a disappointing result but early indications are the market quite likes it.

One of the big issues is cash burn. They started the quarter with $7.7M in cash and lost $1.7 M in operating cashflows. They also need to pay $2.5M cash for TIKS. I feel they are going to need a capital raising soon.

Overall, there are some good signs (excluding Newmont). FY22 revenue now forecast to be $37M. Valuing Damstra at 6 x revenue = $222M = about $1.10/ share (assuming a 15% dilution after an assumed capital raise).

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I think you are pretty spot on. Capital raising is highly likely to come, but the revenue outlook and future growth opportunities is there for Damstra. I think its a 24 month hold though to see the market drive pricing above $1.50/share based on its estimated future CAGR% results.

DTC Price at posting: 67.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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