Thanks for your comments. I haven't undertaken a dcf, however, did a quick back of the envelope and still get to a price broadly between 2c and 3c as current value. I posted most of this on another thread, however, think it's just as relevant and welcome your comments and thoughts.
In the first full year of control under new management, revenue increased for the first time in at least 9 years. Revenue increased from $3.28m in FY2019 to $3.78m in FY2020 (15.2%, also noting the impact of COVID).
I also note that with the first 4Cs, the total receipts for H1 FY2021 (i.e. the 6 months to 31 December 2020) is already $2.12m. DDT recorded receipts of $2.06m for the pcp (2.9%, again noting the impact of COVID).
I have reasonable comfort around continued revenue growth and coupled with further cost controls, should provide additional earnings growth. I think it is also pertinent to obtain an understanding as to the 3 revenue streams (sale of goods, service and licence fees, and royalties) and their proportional breakups, as not all revenue is equal. I expect the cost to achieve royalties revenue would be lower than the other 2 revenue streams.
As shown above, there has been a material re-weighting in the proportion of revenues toward royalties, along with the first revenue increase in a long period.
I also highlight the tax advantages that previous years' losses provides, along with your aforementioned appropriate skin in the game from directors providing a level of comfort re their alignment with shareholders.
If there is any further commentary regarding current contracts/customers, it may also assist with shedding further light on the competitive landscape.
Finally, I can't help but point out the fact the business is currently profit making with no debt.
DDT Price at posting:
0.8¢ Sentiment: Buy Disclosure: Held
(20min delay)