DCL, page-5

Hi Frugs, I'm not sure if it's a bottom and recovery. I think we still have real problems with cash burn and the difficulty at raising debt or fresh equity at any reasonable price given the volatility.

While its still an opinion I think there is still a lot of water to go down under the bridge. I would appreciate your views on my earlier msg. cheers.

Thanks , I do appreciate DCL is followed by Morningstar and they are a still recommending a buy on the stock and undervalued. I not sure how up to date or automated that recommendation is.

I just don't get it.

I've looked at Morningstars reports and it shows that 88.56million shares are currently quoted on the ASX and the balance up to 114,711 will be released after escrow . I think max 24mths escrow post float. If my maths are correct , then the current cash in the Bank ( according to to DCL's ASX report of March 2017) of $4.166Million would equate on a pure cash basis as follows.

$4.166Million / 88.56 shares = 4.7 cents per share.
or
$4.166Million / 111.471 shares = 3.8 cents per share.

I agree that this valuation does not include the the current FUM of $20 million at 1% or $200,000 pa. Although half of this is at call and not "sticky". Even if the total $200,000 was added back on a fair multiple it would only add 1 cent to the current share price IMO.

DCL Management should give us a better handle on where DCL is going and what the go forward plan is.