Hi All,
Apologies in advance for the word vomit, however I did use chatgpt to reword this to make it easier to read.
I'm a medium-term DRE holder and, unfortunately, quite a bit down on this one. However, I still believe in its long-term value and the performance of the team. We were just unlucky with the downturn in REEs—that’s the risk of this end of the market.
I like the positive move toward self-funding, and under normal conditions, I’d agree that a share price re-rate is due. However, given the current market environment, I wouldn’t be surprised if this goes nowhere for the next 12 months. Over the past year, we've seen uncertainty in global markets, and small-cap, non-profitable companies have taken a beating—DRE included.
Looking ahead, the US and Chinese economies are slowing, and there’s increasing talk of stagflation, bond yield curve reinversions, and other macro risks. These factors typically drive money out of risk assets like stocks—especially small caps—and into traditional safe havens like gold. While this would benefit gold producers, much of the market is tied up in ETFs. If we see an indiscriminate sell-off at the top, it could cascade down to small caps.
TL;DR: I expect at least another 12 months of pain until money flows back into stock markets. Once that happens, small caps should see a strong re-rate.
Just my opinion—not financial advice. Do your own research, etc.
Any thoughts or contrary views are welcome, and I'd love to be proven wrong.
(20min delay)