If you take a closer look at the latest 3B, you will see that DDT's market cap is in fact around $40mill (excluding options), and not $23mill as you seem to think.
The company booked a $2.5mill loss on $6mill revenue last year. If all goes well this FY, it may book a $1-2mill loss on $8-9mill in revenue.
On these numbers I think any anticipated revenue increase this FY is well and truly priced into the stock. In fact, the stock is significantly over valued based on historical numbers.
IMO, the reasons the stock went for a run a few months ago were (1), many shareholders expected a big Orica deal (which never materialised), and (2) most of the punters doing the buying (such as yourself) never bothered to have a close look at the balance sheet or the 3B.
A glance at the market depth tells experienced investors that there are 2 fake buy orders strategically placed to keep the sp above 30c. If those orders were removed, the SP would now be hovering at around 22c.
My reading of the situation is that management/interested parties are presently doing all they can to keep the SP above 30c because they know they will need to do a capital raising/SPP sooner rather than later.
DDT Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
