It is tough to determine exactly who is a net seller of DRX, but the stock has had a huge run-up from $1.5 in late 2022 to a high of $20 in the middle of this year, and so individual investors, hedge funds, or institutions are motivated to sell, despite the growth in fundamentals.
Its customer concentration is high, and this has caused some investors to be concerned. We feel that its next earnings release can be a catalyst for a change in momentum, and there is also some potential overhang with a potential Trump presidency which would likely negatively impact steel prices due to tariffs, etc. While we cannot comment on personal position sizing, we generally prefer position sizes to max around 7%, and particularly for smaller, higher risk names, we like to keep their exposure within reasonable levels.