Well now, if they can keep the profit up for the next few quarters DLC can become on its own a little cash cow for future developments and funding. Good cash flow and profits and no debt!
DLC can make it on its own without the Wilcox Oil and Gas 1-25 well and the 11 million shares of EUR. But if they can deliver also, well DLC is totally undervalued for sure. It is already undervalued at present without the additional revenue the two investments could create. Book value is 5 times undervalued and revenue is also 6 times undervalued, and with .00245 cents AUS earnings per share and a valuation PE of 1.63 per share, there is a lot of room to move upward in the SP. (Earnings was taken from ASX DLC Key statistics of .002 and this quarter earnings was added by me which makes earnings .00245 as of today) PE sector rating for DLC type of business is at 14.33 and not 1.63 like right now. That would give a value of .0351 cents AUS per share even without adding revenue and book value to the equation which of course would give a lot higher valuation to the SP.
788,000 cash in the bank and no debt. Management was cautious in their statements about turning around the company in the 2015 end of year report but now it seems they have achieved their goal.
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EPS (TTM) vs TTM 1 year ago |
2,330.00 |
EPS (TTM) vs TTM 1 year ago was 2,330
Now that is a turnaround for sure going from losing millions to a predicted profit of millions. Sometimes when penny stocks stay around for a long time, they morph into a real stock. DLC seems to be moving in that direction.
https://markets.ft.com/data/equities/tearsheet/financials?s=DLC:ASX
I think Value is Here! DLC just needs a little time for the value to be shown in the Share Price. That is called investor sentiment. All my opinion of course. Value is here for sure now. At the very least, DLC should be watched closely by value investors. And traders also.
At a later time I will pass on some information about the top DLC shareholders. Interesting for sure.
