Q: Hi 5i,
What do you expect might happen with DND following the recent events in the next year or two.
Currently held and hopeful for the future, just wondering how much time makes sense to see what comes about before considering a next move.
Thanks
What do you expect might happen with DND following the recent events in the next year or two.
Currently held and hopeful for the future, just wondering how much time makes sense to see what comes about before considering a next move.
Thanks
5i Research Answer:
As we have seen with the stock move, investors are very happy with the new board (though not official until tomorrow's vote). But the excitement needs to now be matched with better fundamentals. Debt remains high, and DND has lost money for the past six years. Even at this year's expected EPS of 8 cents, it is very expensive based on earnings. There is work to be done here for sure. We would expect the stock to consolidate recent gains, unless there is new news, or an acquisition. We would give the new team about two years to prove they can fully turn this ship.