I think that is probably because DRO has stopped announcing their deals. I was a bit surprised to see how low Q1 was, but the company had said this was seasonal and expected. My view is that all should be taken with a grain of salt, but it could also be right. The Q2 cashflow will provide a much clearer picture.
High cash assets in DRO's case are a real negative, because it means they raised too much capital and diluted shareholder assets unnecessarily.
So you are saying my comments about needing to be careful are correct because this end of the market is a "shark pool". So why the objection?
I thought I explained why I was here a couple of days ago (and about 20 times before then). I also don't know whether I will touch DRO again. I can't predict the future and do not pretend that I can. As a result I watch dozens of stocks and wait for opportunities that eventually arise. How I got into DRO the first time was when it fell 30% below the price after last year's huge CR and there were a lot of angry shareholders, so I felt the stock was probably undervalued.
To be honest, I wondered whether the same thing might happen with this one. At least so far, that hasn't happened (no problem, I'll play in other pools). Maybe that is because of a higher level of confidence in future sales, maybe because we've been in a really hot market for all of this year (that wasn't the case last time). I don't lie to myself on TWE and claim I did really well because I was fantastically clever, a lot of it was because of favourable market conditions, same with DRO.
My approach is to sit and watch and wait for opportunities. I currently don't see an opportunity in DRO, but also understand the world is unpredictable. Maybe jimmy2009 is right with sales not flowing as expected, maybe the market will suddenly turn rapidly downward (I have cashed up based on what I see as the probabilities - things never turn out exactly as I expect them to), maybe, maybe, maybe... So I will sit on the sidelines and let the toadfish pass and instead wait for a nice juicy salmon to appear.
At the current price, DRO looks like a toadfish to me, but maybe it will turn into a salmon. I don't care either way, there are plenty of fish in the sea.
BTW I hope you liked my fish analogy, when you write a lot you get better at it, same with investing in companies.
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