Chances are that, like me, if you hold DSE, you may also hold or are seriously looking at LVT.
With the above in mind, I would be interested in people's thoughts of what they would do with portfolio allocation/strategy between DSE and LVT?
Yowie21 posted in "Dropsuite September Paid Users" thread:
DSE 12M ARR with MC currently in the order of 70M
LVT 15M ARR with MC of 300M
and jlo2012 also posted:
LVT a much more complex business but yes road to profitability is longer.
LVT 4C estimated spend just for this quarter is $13.5m on a ARR of $15m.
DSE are estimating $1.4m for this quarter on a ARR of $8.2m.
Dwhale posted in an LVT thread "Why the hell is the price dropping?":
Committed ARR was 15m at end June but committed is not billed ..expense base of 20 plus million with a revenue base of around 6.7.
Cash flow break even in 2021 plus lots of shares sloshing around and generous management incentive scheme
My thinking is, DSE is a much smaller market cap, less known, low operating expenditure, low cost to scale up and grow, and may be cash flow positive right now, while LVT is spending like there is no tomorrow, the management are getting paying themselves a lot, and may be breaking even in 2021? And DSE will be catching up with LVT's ARR pretty soon at the current growth rate with much more profitability because of the low operating expenditure.
Just looking at the past LVT share price behaviour, it can spike a lot. Rough figures: (12c->25c = ~100%) (23c->67c = ~190%), and (39c->76c = ~94%). Currently at 56c (recently as low as 51c) and it feels like one positive announcement from going on another run.
Analysts say 89c (mean) with a optimistic $1.13 at the high side:
https://www.marketscreener.com/LIVETILES-LTD-23488790/consensus/
So a 59% up side to the mean and 101% up side to the optimistic side.
Strategies:
1) DSE 100% - As it has more chance to grow and retain value from now moving forward
2) 50% each and hold for long term
3) 66.7% DSE and 33.3% LVT and hold (currently my plan)
4) Or a combo of 2 or 3, hope that LVT spikes first, ride the wave, exit when it looks like it has peaked, and then dump it all in DSE and hold DSE for the long term. Rebuy LVT again when it repeats its share price pattern of dropping 30%+ from peak and repeat?
Thoughts?
(20min delay)
