RE:RE:RE:RE:RE:DM.V BREAKING .20 RESISTANCE ON BIG VOLUME .LOOKING GOODI completely agree that the drone deal needs to close, as well as any of the AI contracts that Gunter mentions that are under non-disclosure agreements.
I realize that the market is not factoring the covid money into the valuation of the company. For some reason there is the belief in the market that covid is going away and the reality is, that it is not going anywhere anytime soon. Covid will definitely be with us for the rest of human existence, and depending on the different variants that occur each year and how deadly they are the population will require booster vaccination shots, like the flu. The number of people that return to get their shots consistantly will probably determine how bad outbreaks occur each year and whether or not the population needs to go back into lockdown. However, with testing and booster vaccination shots, lockdowns should not ever occur again, if they both continue.
The problem will be that over the years less and less people will go get their covid vaccination shot each year and of course we tumble back into lockdowns again. Currently, only about 20% of the population ever gets their flu shot. Covid may require over 50% each year in order to keep the economy going and to prevent lockdowns.
At some point the market will finally realize that covid is not going anywhere and those companies generating revenue from it will need to start factoring some of that in for long term. Regardless, even in the short term covid revenues have got DM to "squeeky clean" balance sheet, cash in the bank and is allowing the company to bid on bigger and bigger contracts. At some point, all of this still needs to be factored into the company. Even if you just give the cash in the bank a 10x earnings you have a $0.28 share price.
I have no doubt this stock will take off, as AI is playing an extremely important part in our technology currently and in the future. AI stocks get talked about alot, but even they haven't had their bull run like cannabis, blockchain, or some commodity stock has. The average person is just starting to get a grasp of some of the things AI can do, so I think this stock will be well positioned to take advantage of that, as well as being able to back up their increase in share price with their revenues.
To me, it doesn't matter that a good chunk of their revenue is currently from covid, because covid is going nowhere and testing is here to stay. And any cut back in testing by a company won't last long before it's required again and the market will finally start to realize that those covid revenues are going to continue for quite some time. Many companies will realize or already realize that the shutdown due to lack of testing will be far more costly to the company then the cost of the tests. Keep in mind that when a company is shutdown, they are often shutdown for a minimum of 2 weeks. Again, the loss of revenue is far more than the cost of those tests.