RE:RE:Keystone Financial Talks about DRXIt doesn't matter what Keystone financial thinks about the stock. They've recommended payfare and it went down 75% in a single day because of losing a single client and also a director resigning the day before it happened... That's horrendous timing of resigning if you ask me. That company market cap is basically the value of their cash and assets, no one wants to even touch it after that horrible press release. Every company has upside and risk, it's just a matter of time before you find out what happens. That's why people who can't stomach these drops invest in index funds. Keystone knows as much as you about what the stock will do tomorrow.
With DRX, they're not dealing with the lower tier jobs gig economy, they're dealing with big companies with big projects in the strong infrastructure sector. For example, Eli Lilly can't just quickly create a successful automated custom steel structure fabrication line, it's not their specialty. They want to pump out meds as fast as possible to make money off sick people, so they rely on the hard-to-replace expertise of DRX to do continue to do so. Unlike with Payfare, where Uber or Doordash can just create their own payment platform software easily. I still believe the CFO who says they're handpicking the jobs that can bring them the best return and lowest risk of canceling, etc. However, I think we're one bad press release away from a huge drop as investor sentiment seems really low right now. I don't think the directors are stupid and I think they see what's happening. They just saw their net worth plunge by over 50% in 4 months. If I had a family business whose founder just passed away this year, I'd be upset over this and find ways to turn it around just to make him proud.
For me, my strategy is to continue to hold. I've built my position enough that it's 15% of my portfolio and I'm fine if DRX goes bankrupt or goes to 0. I don't think they will go bankrupt though, unless they just withdraw the funds directly into their own bank accounts and stop all activity, but that would probably be illegal. I think if any investor properly allocates funds to their own risk tolerance, then it doesn't matter what the stock does in the short term. But I do think the board needs to come out and give us shareholders assurance by acting ASAP by increasing dividend substantially. A new big contract doesn't matter if they pocket the funds for themselves. Personally, I'm giving them 6-9 months. More than enough time till their next earnings after the uncertainty from the election dies down and enough time for them to announce new contracts. If no action by ADF, I'll act accordingly and start selling shares.