Q: Hi Guys,
Do you think DOC post-pandemic is dead weight in my portfolio and one should just unload it OR is there any hope on the horizon. It’s been bumping along at .12 to .16 forever. Is there anything out there that would give a glimmer of hope?!
Thanks a lot!
Do you think DOC post-pandemic is dead weight in my portfolio and one should just unload it OR is there any hope on the horizon. It’s been bumping along at .12 to .16 forever. Is there anything out there that would give a glimmer of hope?!
Thanks a lot!
5i Research Answer:
Stronger growth or new acquisitions could be catalysts. But its small size and losses make it difficult for it to attract new investor attention. Another loss is expected in 2024, and cash flow continues negative (-$14M in the trailing 12 months). With the cash flow drag and $7M in debt, it will probably need more capital soon, and an equity sale would dilute shareholders. It may see some tax loss selling as well (still). It reports on Nov 23, but it is hard to get too interested here.