I am a bit amazed how low the share price is now. Market cap below $30Mill even though I am aware that the shares of DTS are very thinly traded and are vulnerable to sharp fluctuations.
The impression that I got from previous announcements (installation and contracted stores forecasts) and the fact that management preferred debt to a capital raise in July and the focus on only big players let me believe that management was confident to soon be cash flow positive.
The quarterly put a dent in the timing of my cash flow expectations.
Nevertheless regardless of where the share price is I am confident that the pipeline of new customers/contracts in Japan, Europe and particular USA is promising.
The aggressive integration into aggregators' systems is in my view a sign of substantial QSR contracts to follow. And these contracts are about the Algo which will deliver a lot higher revenue per store.
In regards to DTS' strategy to only focus on big players in the QSR market I would suggest to management to develop a commission based strategy for smaller QSR chains where sales agents getting commissions instead of salaries to preserve cash outflows. (Just an idea)
So let's get the Dragon of the ground.
K
DTS Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
