2019-June 2021Back in Nov 2019, DW8 had their first receipt of revenue. This was driven of course through
logistics...
From Nov 2019 to May 2021... DT has been building the logistics block of DW8.
During this period the SP went from 0.007c to 6.5c back down to 3.8c... then to 21c and then back down to 7c.
Now that we are sitting at 7c perhaps this is fair value (fair - meaning considering revenue alone - no potential accounted for) perhaps even 5c or lower.
My strategyEveryone has their different strategies in investing. My own strategy is I am looking for about 5 companies that will be breakthrough - big game changers. (I expect some of these to fail, but I expect one will break through and it will very big) so... for me
1. They must be disruptive.2. Management must be excellent and have demonstrated they are capable through past performance.
So I will invest for a long time (2-3 years +) and buy and hold these 5 or so after doing DD, (not trying to time tops/bottoms). DW8 is one of these companies. Why? This has big potential and the management has demonstrated that are capable. It all lies in the potential ahead.
The Potential ahead1. Disruptive. Most people do not understand what DW8 are doing. Hence the Reddit post, some said, what do you say to rebut it? Simple, DW8 are focused on
five revenue streams, the only one the Reddit post talks about is Logistics. Logistics is the weakest and DT knows this. This is the first block. This post from the Redditer has a view of weeks/months.
2. Management. Dt has shown what he has done with Logistics in that period previous when SP went from 1c to 20c to settle in 7c. I think He will do it again, with the next block Market. We may not see results till 6months/12months.
To highlight the disruptive nature and management of DW8 take a look at this announcement from DT on November 2019 when Logistics started.
DigitalWine’sCEO Dean Taylor explains this saying“Ourvertically integrated platform provides us the ability to generate both transactional and logistical revenues. Right now our primary source of revenue is fromLogistics Fees,which are entirely volume driven. The next phase of the platform will be to establish a B2B marketplace whereby the Company will also generateTrading Feeswhich are value driven withWINEDEPOT taking a percentage of the overall transactionvalue.”“It’simportant to remember that we are are a technology company that uses a platform to connect and aggregate customers within an industry. As such we outsource 100% of the logistics services to our logistics partners under variable cost agreements. Putting the corporate overhead of the Company aside, we generate a profit on every case that flows through our platform from day one.”
“Whileover timeTrading Feesshould become our largest and most profitable revenue stream, in the interim we are leveraging our logistics solution to acquire suppliers and generate cash flow that is reinvested into the establishment of the B2BMarketplace.”
Remember this is back in NOV 2019 - DT already knows where we are going.
Everybody wants to own an amazon/apple whatever and everyone has a story how they owned one and sold too soon. But all of them had these periods of ups/downs/ sentiment shifts etc.If you want one of those you simply have to hold and hold and hold. Of course to keep holding you have to understand what the company is doing at deep level and have the conviction that they have the right team to execute and bring this vision to reality.
I think in 6 months/12 months time, we have another re-rating when MARKET is built fully and gets more traction and then we might have another wicked pullback. Just like what happened from 6.5-3.8c and just like 21c to 7c.
We will see.
DYOR and all that.
(20min delay)