Share
2,558 Posts.
lightbulb Created with Sketch. 162
clock Created with Sketch. 19/08/20
11:51
Share
Originally posted by huffster012:
↑
'Pump' orchestrated by Oleg to secure cash for a year (for the last 4 years this has been a terrible business based on financials that pays the executives exceptionally well). At the same time that Oleg was talking about the imminent $70m deal he was paying consulting fees to his primary investor, Bergen, via a subsidiary and Bergen had a seat on the board. Bergen who had regular contact with DRO must not have believed the imminent upside and used the chance to unload most of their shares. A lot of retail got caught in the crossfire. It is hard to blame them. Snowtown included.absolutely reeks . A lot of people sold their shares rather than deal with this management. I learned from last year and thought if they were dishonest this year they may try the same tricks this year. So I bought at 10.5c anticipating a pump and sold at 18c. I would never hold this company longer term. It is probably worth around 3-4c a share IMO. And only because they have cash and I could strip it out.To me the play here is to find the greater fool to buy your shares at 25c. It is possible. Look at the US markets, Kodak, Hertz. Look at small caps in Australia. This is even more possible if you believe DRO is being manipulated. As I do. What is the upside here? NO ONE in the world would ever pay $100m (approximate value at 25c including options) for DRO and there is no way it is ever going to return $100m in profit to shareholders. Can you imagine DRO at 40c ($150m). It is impossible IMO. DRO is a loss maker and will be that way for a while. The technology is not unique and has no value. It has a high cost base. Even if DRO sells $25m next year it will likely make even more losses. And that is a HUGE if.
Expand
What's Oleg meant to do Huff?
(20min delay)