Please give me your updated views on DRT coming off the recent Q results. It's had a pop today, but just need your clear eyed view of prospects going fwd.
Many thanks for your insights.
EPS of 2c beat estimates of -8c. Revenue of $60M was 11% ahead of estimates. EBITDA was positive vs an expected negative $2.9M. DRT also announced a new CFO. The stock has nearly doubled this week but is still down 9% YTD. Sales rose 22% and margins improved. Certainly it was an improved quarter. That being said, the very small size of the company, very large debt level ($115M net with all obligations), losses and negative cash flow still make it quite risky overall. No value has been created here (the stock was $9+ less than four years ago and is now 63c). But, we will give DRT credit for a good quarter. Unloved stocks (and it certainly has been) can still move sharply if sentiment changes at all. But overall we would not give it a strong endorsement.