On sale now! Technicals oversold too.When the markets correct they throw the baby out with the bath water. Look at what happened to OTEX. Amazing earnings, huge pop in price, analyst upgrades to target prices... and now a total pullback. Buy time for the long term.
DSG hasn't reported yet, so who knows what happens there, but in terms of selling off the stock, it doesn't have high trading volumes so all price moves will be exagerated.
Also, there are millions of people who watch stocks every hour using their mobile phones and they have enjoyed a fairly steady one way rise up. This creates unrealistic expectations and builds bad habits such as becoming too emotional and not taking a longer term perspective.
DSG is a rare beast with an amazing platform for recurring revenue and very sticky business. They have global reach and have access to the brightest tech pool in North Amercia for blockchain (Kitchener/Waterloo/GTA).The know how to integrate acquisitions and have a well established leadership team.
The fundamentals are solid.
Technically, the stock is oversold and we are seeing some buying from chart players. It is tough for an under followed stock to rally big in a market of knee-jerk reactive types with easy access to a sell button.
They say "If you can't beat 'em... join 'em." But I think that is a bad idea. These are the same people who buy too high and sell low.
It is hard to argue that you would be buying DSG today at a "high". I think there is a stronger argument that it is more at a "low" level.
For me it's pretty clear what to do with this stock if you hold it today, and what to do if you are in a position to add. But then again, I am in for the long term.
Cheers.