All aboard the lead balloon. You guys have got that right although maybe it should be the hot air balloon.
I've been sitting on the sidelines watching this stock for some time now and it is has been really interesting reading a lot of the BS announcements made by DDT and the overly optimistic opinions of many of the punters caught up in the hype since last week.
And of course there is a method in their madness so they can skin the best profits from their trading. Good luck to them though they deserve it for their ballsy efforts and good humour.
Despite all this, the basic flaws are there for DDT. As at the end of June 30 2009, they were running out of cash. Suddenly there is an announcement near the end of September that there has been a turnaround. Nothing specific other than the cash position had improved in the July/August period and a lot more hot air about controlled expenditure and over achievement of targeted net profit.
Who is kidding who?
This was closely followed by a letter to shareholders by the Chairman who has done such a wonderful job of screwing the DDT shareholders over that he is choosing not to seek re-election at the AGM later this month and is asking them to support an ex DDT director that had his hand on the wheel at Datatrace and steered it so well that the business was fully impaired at June 30 2009.
Then comes the 'seed protection technology' announcement to save DDT and Datatrace. This is just more of the same hot air. There is nothing specific in that announcement that should make anyone too excited about the long term prospects. The process hasn't been commercialised yet and DDT are not saying how long that will take, how much it will cost or how the JV is being funded.
It would also seem that there are still some outstanding legal cases with previous employees that have to be settled. Win, draw or lose, that will cost DDT shareholders more money. No mention of this lately.
The AGM should be interesting for all comers. If there is nothing wrong in paradise and the future is all rosy, how come there appears to be so many disgruntled shareholders?
All aboard? Anyone?
DDT Price at posting:
6.6¢ Sentiment: None Disclosure: Not Held
