Q: Hello Team,
I'm interested in these two companies after going through most of the questions here, there seems to be a change in your preference. Why is D2L a more prefer investment NOW compare to DCBO. What has cause you to change your opinion on them. Thank You
I'm interested in these two companies after going through most of the questions here, there seems to be a change in your preference. Why is D2L a more prefer investment NOW compare to DCBO. What has cause you to change your opinion on them. Thank You
5i Research Answer:
We owned both DTOL and DCBO in the growth model portfolio, but after a few execution missteps and contract losses, we began losing confidence in DCBO. In its latest earnings report, AWS advised DCBO its decision to not renew its Order Form. Despite DCBO's relative share price underperformance to DTOL recently, it continues to trade at a higher multiple than DTOL. DTOL has been demonstrating improving margins, and shares have been moving in the right direction and trading in a more 'clean' structure than DCBO.