Q: Recent run up on this stock. Your opinion on potential of this stock.
5i Research Answer:
DNG, market cap $149M, is up 34% this year. It has no analysts, but a 3% dividend which was just raised 16% for the next payment. It has $33M net cash and is very cheap at 9X earnings. Production hit a record in the 3Q and net income rose 38%. Fundamentally, it is on a roll, and this is getting noticed by investors. There is small cap and sector risk here, but based on recent results, the balance sheet, the dividend and the valuation, it is a very solid small cap stock. Potential will come from continued growth and/or a re-valuation. Investors have noticed the dividend and growth and it 'probably' should get a higher multiple.