KDY (ASX) DW8 Growth

Originally posted by Tommyhaib: ↑

This isn’t in anyway an infatuation. I’ve been involved in both public and private markets for a long time and the ability to market your business should not be treated lightly, especially on the public side.

The reality here is that the share price has been smashed and the board/CEO need to think about what needs to be done to change market sentiment. This is part of their job and in my conversations with Dean and his board, they have told me this is top of mind but nothing has changed. The majority of shareholders would now be down on their investment here (especially recent backers of the 2 back to back raises) and would like to be hearing more about what is happening at the company.

I’ll also add that I’m not urging for the company to release every little thing to the market however many items in 2021 which justified an announcement largely went by unnoticed (or had a LinkedIn post) and I want to see change this year. Unless you’re deeply ingrained in DW8’s socials/hot copper, I feel like it’s quite difficult to understand the full picture which is sad to see.

I hate being shut down on this thread whenever I’m slightly critical of DW8’s messaging to market. Again, I’m yet to sell a single share but I want to hear more news.

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It more or less seems that you're blaming the market for your failure to exit when the price of the company is overvalued. No way should this have hit 21 cents in its stage of the business cycle. That equated to a market cap of $378mill when its revenues were just shy of $4mill per year. The company had to hype the market up in order to get the SP moving to gain enough market share to acquire quality businesses, and that's exactly what they have done.

Now, the market cap is about $130mill and poses some better value on an annual run rate of $25mill-ish I'm guessing from my forecasts. If those that bought at a larger market cap believe in the business than there poses significant long term benefits from the business than what the market realises here and now.

To me, it seems you are just whinging about your ability to enter and exit the market or are looking for short term gratification on your investment in the company which isn't the goal from investing in a company like DW8.

About news flow, those with little conviction need the market to be updated every few weeks in order to keep their small minds at peace. There was 35 market sensitive announcements last year, or one every one and a half weeks. They needed to slow down on the market updates to quarterly because of this inflating the SP.

The sentiment changes on small cap companies very quickly when the SP declines, because retailers can't stand to see a company drop even when they believe the company is progressing nicely, its in our DNA. Block out the noise, sell when its euphoria for holders. When people are thinking about selling their position, that's where the optimal top up opportunities lie.