RE:RE:New Position I can't explain it either Reeseman, just consider yourself lucky. I recently took a position too, as this is way too good to pass up. I literally salivate over these opportunites. I've watched this stock for about a year and thought I missed my opportunity when I saw their record revenues of $19.04 million in Q1 up 2253%, but instead of moving up to a fair market value, it dumped down. Then they have another oustanding quarter of revenue over $10 million and again it has worked it's way down another few cents since the announcement. There are those that see this stock strickly as an AI company and their AI accounted for very little of that record setting revenue. And because you have investors that seem to think vaccination means less covid testing, I guess they don't see the value in this stock. In reality, covid testing is here to stay for quite some time.
Whereas other investors like myself see DM as a multdimensional company with various streams of revenue in a few different sectors. I see this diversity as a strength for the company. Currently, their covid testing is a major source of revenue, but later it could be another part of the company like their AI, or Medi-Call or their drone or a combination of everything. For me it doesn't matter where the revenue is currently coming from because it is still revenue. And that revenue has gotten this company out of debt with a "squeaky clean" balance sheet and over $10 million in the bank and those revenues are helping to expand and grow the company and those revenues are going to continue.
To answer frewi11 it doesn't matter that the stock currently has 350 million shares outstanding, it's all relative to their revenues. The run rate for the year is currently $60 million and given a 10x valuation, which is low for this sector you get $600 million divided by 355.17 million shares and the magic number is $1.69. That should be a fair share price given their current revenues. If their revenues should happen to fall next year then I would expect the share price to fall.
So how can anyone here justify or explain the current share price at $0.18?? A price that is nearly equal to what it was one year ago. Even if you take half of that number ($1.69) or a quarter of that number or even just give the money in the bank a 10x earnings and you end up with share prices much higher than this. There currently is a major disconnect between the revenues and the share price. This stock has no choice, but to move at some point because it's share price is completely out of wack from it's revenues. This is one of those 5-10x baggers people are always looking for, but often miss out in. Again, the numbers are there, it's not based on speculation.
You got stocks with no revenues and more shares outstanding with much higher market caps and share prices. At times the market makes no sense at all. Look at some of the junior exploration uranium stocks. Some have 700 million + outstanding shares and have no revenues, but they have market caps and share prices far exceeding DM.
I read on another bullboard a person described the stock market like walking a dog. I liked this analogy because I've seen it play out so many times over the years in the market. Sometimes the dog (i.e. share price) falls behind the person walking the dog (i.e. the company revenues) and sometimes it gets ahead of the dog walker. Regardless the person walking the dog continues to move forward. Right now the dog has certainly fallen behind the dog walker, but company keeps moving forward. Sooner of later that dog will catch up and likely pass the dog walker.
I'm just happy that you have investors in this stock that could not see the forest for the trees. They are so singly focused on the AI that they can't or won't see the value in the revenues generated by other divisions of the company. It's AI or bust for some. lol This has provided an opportunity to jump in, as this disconnect between share price and revenues can't continue to last. Don't get me wrong, AI is the primary focus of this company and it has an integral role to play in all the other parts of the company.