Its a game of probability so i dont want to 'jinx it'

DUG raising cash. at $1.90

could build into DUG around these levels.

I dont know how the market will react when the SPP shares are issued 20th Nov 2024. They generally trade near the SPP in this case $1.90

@Shapeshifter take this with a grain of salt since I got out recently at prices above $2.50 but still monitoring....

I'm concerned they needed to raise in the first place given all the revenue they have created over the last couple years, I would have hoped too see that generating cash that is paying for the new compute. Looks like they could see the share price falling so got in on a raise before it got worse. In saying that the capital raise has removed a lot of risk due to the debt created from the new compute.

See my CFO revolving door notes which I find very concerning. Revenue for FY24 was $US68m or averaged out $US17mil a quarter so $US14mil for this quarter is a backwards step, that's before you consider the order book has decreased and new services awarded in the quarter were $US12.9mil, which is not keeping up with quarterly revenue figure of last year.

Not looking positive from my perspective at the moment...

@Dominator and @Shapeshifter Interested in your thoughts that in all of their presentations they highlight the middle east as their largest market currently and one that they're continuing to invest in whereas I would have thought that with all that's going on in that region it would be the last place you'd want to be?

Thanks @Dominator. I don’t think this is going to make it into my “first 11” team in my portfolio yet.

@Jimmy my notes from the FY24 conference call reference the Middle East were as follows:

• Pipeline for Middle East is large but rest of the world is similar to the past.
• Under evaluation phase in Middle East by potential clients.
• Contracts happen in stages, you don't just get into big contracts with large clients.
• DUG doesn't have the reputation yet that the largest player has. As per CEO''s words their competitor has "you don't go wrong with choosing IBM" reputation.

My takeaway from the call was that they are trying to establish themselves and don't have any large contracts yet. Getting these contracts will be core to any potential growth in my opinion.

I think when they talk about the Middle East they are talking about Saudi, UAE type countries that are a little more stable in the current situation. Actually, sustained high oil/gas prices would be a tailwind for DUG in my opinion as that would support elevated levels of exploration worldwide. Processing seismic data and images for oil/gas companies is core business.

Cheers @Dominator much appreciated