Thank you for taking the time to read the analysis. I can't predict the future, however past trading patterns; especially when it comes to Small Cap shares, one will often witness a dump after a significant price rise. For a day-trader or short-term holder, for example, a 0.009 entry and 0.015 exist is significant enough. As for me, personally, I don't usually hold a wide variety of companies on my portfolio because it becomes rather tiresome to keep track of, esp with a day-job and day-to-day fluctuations. I'd say, if you're like me and can justify your holdings for a long-term benefit - then it's definitely worth developing the patience to cope with the sell-off or dump that often follows a significant price change. We witnessed it in the previous weeks, and I'm sure we'll witness a similar bouncing pattern as we move forward after this recent positive announcement.
Key Points of what I like about DW8:
1- Clarity and Openness: Mr. Dean Taylor has not been shy about admitting what his plans are for the company, and his realisation that it takes time. He tends to understand and respect the relationship with the customers to keep moving the company forward; which is a significant vote of confidence. (Example the support package during the Covid crisis for their customers)
2- Coping with problems: As previously mentioned, I'm admittedly a bit of a nerd when it comes to Mr. James E. Burke's leadership and Mr. Peter Lynch's strategy on investing. DW8, under the leadership of Mr. Dean Taylor copes with problems head on and promisingly turns them into opportunities. Quoting again my previous example of a support package for their customers, Mr. Dean wasted no time in pledging support for the Wineries and Farmers. Australia has had a rough time - the bushfires, the current pandemic, and trade-war issues with China; despite those issues, Mr. Dean has kept the information flow fairly consistent.
3- Owning up to personal issues: In the day and age of Social Media, charismatic CEOs are taking to becoming more like celebrities and less like business owners; and the lines get blurry, and it's a recipe for disaster. (Example: WeWork, Theranos, and Mr. Elon Musk's erratic tweeting). However, Mr. Dean Taylor went through a divorce settlement; and instead of posting an excuse for his "private" matter being made public - he owned up to it by purchasing shares in the company as a vote of confidence. That alone speaks at great length about leadership.
We're not perfect. We mustn't expect leaders to be either. However, an individual willing to own up to something is much more significant than someone who uses an excuse to justify their position.
Regardless, having said all that: I do believe maintaining a good average price is more important than accumulation. Nobody can precisely predict where the share price may be. However, my advice would be - choose a price you're comfortable with, make that your average, and be happy with the parcel you hold; because in the long-term, it will pay off.
JMHO. DYOR. GLTAH.
Kind Regards,
-T
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