From what I understand in the maket, and many of the posts below, its about it's confused strategy between its claims to be an "online" company, but investing more and more in retro businesses (which isnt a bad thing)
However, market has been sold on it being online - so, perception in the market is unclear whether to value it as a tech/media stock, or a traditional publishing company (ie MPH, small magazines, small music label)
DES needs to clean up its strategy and be concise as to what it is trying to be - neither of its options are "bad", its just that there is a perception that the Company and management pursue almost any acquisition, diverting focus, and putting stock out on market against acquisitions (without suitable escrow provisions) - which inevitably leads to sell offs at the slightest weakening of the market.
Probably the most confusing aspect of DES is its 20% holdings in QFX. QFX has sufferred a massive 30% drop in price over the last 10 days, with its 4C showing that it needs to come back to shareholders for more money - and soon. This will also have an adverse effect on DES price, as the market will factor this performance.
I see this as a good opportunity to buy in, having watched the stock for months now. I think its correctly valued, but would really like to see a more concise strategy.
DES Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
