Hi Jackie,Interesting question as it brought up a related...

Hi Jackie,

Interesting question as it brought up a related question of my own. To answer yours, no, I dont believe there are any brokers covering Dropsuite. Brokers tend to cover larger companies with higher liquidity for various reasons. This allows small caps, such as our Dropsuite, to fly under the radar - to our benefit, until they grow to such an extent to justify interest from brokers/analysts.

So this begs the question, how big does a company need to be to attract the attention of brokers? I'd guess being included in an index such as the asx200 could be a catalyst for this, but I went for a look at who is and isnt covered to dig deeper. I discovered Audinate (in asx300, not in asx200) at MC 588m is covered by brokers canaccord genuity and credit suisse, and Whispir (not in asx300) at MC 409m is covered by canaccord genuity. On the other hand, EML Payments (in asx200) at 1440m is not covered, nor is Bigtincan Holdings (not in asx300) at 479m. This is just from looking at the participating brokers for the consensus recommendation under the "recommendations" tab in the commsec app. I dont pay a great deal of attention to broker coverage so someone correct me if I'm wrong.

I'd be interested in anyone elses input on this or other noteworthy examples. Am I right that EML has no broker coverage??

So it's clearly a bit hit and miss but you could hope for some broker coverage if (/when ) dropsuite's market cap reaches around the 400-500m range. This seems to often be a tipping point where asx businesses attract a lot more attention as they are also included into the asx300. So they come onto the radar of investors managing larger sums of money, and often rerate. Let's hope DSE has the legs to make it that far!

I did discover Morningstar Quantitative covers most companies including Dropsuite and have their fair value at 20c. As the name suggests it's nothing but a quantitative analysis based on financials that produces a fair value estimate.

Cheers, H