Recent SP DeclineWhat's causing investors to be so negative on DRX, despite solid results and swelling order book ? Is there anything, in your view, which could change the market sentiment?
We think investors are still a bit confused on the insider selling block earlier this year (bought by the company). But any stock up 211% in a year is not going to go up in a straight line, especially if investors worry about recession, elections, war or whatever. The stock is very cheap on valuation. There has been ZERO news releases from the company in more than two months, and small cap investors like to react to 'news'. We think continued execution in earnings or backlog will be the main catalysts here. It has the potential to win some large contracts but the timing of such is not always certain. (5iResearch)