Pinned straw:
I’ve had Dug Technology on my watch list for over a year now.
This business sounds interesting and the share price is starting to look interesting also. It’s still not cheap according to McNivens formula, buts it’s getting close to a buy. I think it just went way over its valuation in 2024. Any thoughts from other Strawfolk on DUG as an investment?
Source: Commsec
What does it do?
“Dug Technology Ltd, a technology company, provides hardware and software solutions for the technology and resource sectors in Australia, the United States, the United Kingdom, Malaysia, and the United Arab Emirates. The company offers high-performance computing as a service solution; data centre cooling solutions; scientific data analysis services; and DUG Insight, a full-service, interactive software platform for advanced seismic data processing and imaging, interpretation, visualization, and QI across land, marine, and ocean-bottom surveys. It also provides data services, including on-demand support for data loading, quality control, and management services.
In addition, the company offers geoscience services, such as seismic and land data processing, DUG deblend, time-lapse and ocean bottom seismic, full waveform inversion, depth, and least-squares imaging, petrophysical processing and interpretation, quantitative interpretation, and regional velocity model services. Dug Technology Ltd was incorporated in 2003 and is headquartered in West Perth, Australia.” (Simply Wall Street).
Analyst Forecasts
Analysts are forecasting DUG to grow earnings at > 30% over the next few years (Simply Wall Street data).
I don’t hold this yet. It’s just starting to look a bit interesting and I’m wondering if anyone has done recent research, or has a view on it before digging deeper?
Not held
@Rick I've owned DUG twice now IRL. Sold out in the $2.50+ range when it was up there previously. Main issues:
- I didn't have faith that revenues would keep accelerating which was required to pay for the new compute. Capital raising has effectively paid for this but of course this diluted share holders. Looked like a surprise raise in my opinion to do it before the share price slid further.
- Red flag reference the CFO position. Read all my previous posts for more details.
- There hasn't been much commentary on results. Normally they have reported when there is good news.
Currently wouldn't touch based on above and not surprised share price has been hit hard. Half year results will be interesting to see where the business is at.