Arbourmark wrote: I have been reviewing some of the recent DM News Releases and trying to figure out why the stock price has not shot up. I have been saying for awhile that many of the news releases lack clarity and important details. I believe that is one issue that needs to be addressed immediately as the markets are not giving DM the love they deserve.
Many people on this board are so focussed on seeing covernment contracts but fail to release how big and valuable some of the industry contracts that DM has signed to date in both the mining and film and television industry.
If you recall they announced a $20M contract with a
Major Film Studio. Canada and in particular Vancouver and Toronto are major forces in this field just behind California. This industry is a multi-billion dollar industry that I believe due to Covid-19 will be growing bigger in Canada for a few reasons:
- Canadian dollar is 30% lower than US dollar sostudios save money coming here for production
- Canada has a better grip on Covid-19 and safer for staff
THe Film and TV industry was shut down like every other non-essential businesses and people stayed home for months and streaming services like NetFlix, Disney, Amazon Prime shot up. These companies thrive on content and constantly need new content. The USA Covid-19 pandemic is raging in the USA and Canada is even more important to this multi-billion dolar industry and Covid-19.
Disney was primarily a big screen production company that had multiple big screen releases annually but covid-19 shut down theatres hence Disney launched a new streaming service to compete with Netflix and Amazon Prime and that is their focus.
Canada has all the major film and TV production houses operating in Vancouver and Toronto like
Netflix, Warner Brothers, Sony, Disney, Viacom, Paramount. These are major studios worth billions of dollars that inject billion of dollars into the Canadian economy but they need new content.
Look at this recent news article in CNBC on Disney:
https://www.cnbc.com/2020/10/12/disney-reorganizes-to-focus-on-streaming-direct-to-consumer.html I do not believe the markets or investors realize the importnace of DM new release that announced at $20M news release and I have no idea which major film and production house they signed with but I suspect it was one of the above and I am confident that more are to come with some of the other major production houses.
Think about this for a minute, DM has about $29M market cap and they signed a $20M contract with a major Film Production house the stock price went down, makes no sense, the same goes with the mining industry multi million dollar contracts, not to mention the multi million dollar AI contracts signed with Lotte Corporations, 7 Elleven, Canadian government.
The 3rd quarted results will be awesome and this stock should move much higher and to new all time highs in my opinion.