Whether Bitcoin is at $70k or at 35K currently, their profit margins are still 80% regardless. I know things right now don't look pretty for DMG or the sector as a whole, but if you look at the basic fundamentals for the company, they are still unchanged. So please, don't disappoint me again More Hopefully management realize the importance of appearances & will take ALL measures to resolve this ASAP. With some luck, maybe Bitcoin slightly recovering may absorb some of that selling, if Bitcoin doesn't co-operate, pray & be patient. In the short term, i fully expect to see this little surprise to put some added selling pressures on the stock price, so don't be alarmed if this doesn't trade as normal for the next week or so. My conviction in them hasn't been this shaken since those horrible days last year with regards to that misguided equity raise. But what has slightly altered, is my faith or trust in the ability of DMG mgmt to be transparent with investors. I still believe this is the best publicly traded proxy for Bitcoin in the whole sector and that has not changed. Personally, this will not affect my perception of this investment long term & my positive outlook remains intact. There's not really much we can do about now except hope the company resolves this issue swiftly. In any rate, what has happened, happened. This should have been really simple & straight forward. This isn't JP Morgan, Google or an Amazon type situation where there's a myriad of financial complexities that required many hours from both the auditors & accountants. Imo, this wasn't anything too complicated that required a whole team of accountants to work 24/7 for a whole year to solve. The company's mgmt should have delivered on time with their regulatory obligations with no excuses as they had plenty of time to accomplish the required task.
Especially in these difficult times with both the overall market sentiment & the current state of Crypto. To be honest, this was probably the last thing we needed right now, more doubt being cast over the company. The big problem though isn't that it happened, it's the message you are conveying to the investing public regarding the image of the company & maybe some issues of competency & transparency. So some hardcore defenders of the company might use this excuse, that S happens & it's common, so no need to worry. I understand this sort of stuff happens in the junior Canadian markets quite often, sometimes the issue is benign and resolved quickly & sometimes there are deeper complications. Just in case there are folks who will defend the company on this issue and make some sort of justification to relieve them of any responsibility for failure to deliver, let me just say this.
This definitely does not send a good message to the markets or investors and could portray the company & it's management as amateurish & disorganized. It's almost difficult to fathom that they would put themselves in a situation like this after all that has happened in the sector over the past year.
Not exactly sure what management is thinking here, but i expected more from Sheldon & team and they should have been more disciplined & ready. Don't really know what to say on this matter aside from it happening at probably the worst time for the company, its s/h and definitely its stock. Well, this latest development while totally unexpected is quite unfortunate as well.
0 kommentar(er)
