Q: Is there potential in this stock?
5i Research Answer:
DC.A is a small cap company that operates as a publicly owned investment manager. The company owns a portfolio of investments with a primary focus on the mining industry, including publicly traded securities, private investments, debts, as well as warrants and options. DC.A trades substantially below its book value, which is understandable given that DC.A’s book value per share stayed flat in the last five years. It could be an acquisition target and look interesting if it initiates a buyback program to narrow the discount in book value. Other than that, without any catalysts, DC.A does not look that attractive as a long-term investment.