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Last edited 2 years ago
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Performance (34m)
-13.8% pa
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Added 2 years ago

@Summer12 I used to share your optimism on this company but as of today I am selling out.

I have flagged my previous concerns about the cash burn rate and the dwindling cash reserves.

For the last 6 months DOC have burned £9.07M and currently have £12.4M available. There must be a cap raise coming shortly.

The last cap raise (March 2022) was undertaken at a 17% discount to the VWAP (A$0.31) with a securityholder participation rate of 0.73%.

With the SP currently A$0.195 another cap raise will be brutal.

I figure that if I change my mind I can always buy back in during the next cap raise where the SP will be smashed.

Added 2 years ago

As predicted in my previous valuation on 30 January 2022 DOC are needing to raise additional working capital of A$11.3M + SPP A$1M (not underwritten). Today, shares are trading at 27.5c or 8% below the SPP price. If you are interested in the SPP it would be worth taking a look now.

The capital raise wont go far with DOC last reported cash burn rate of A$5M per qtr.

DOC have demonstrated good growth and promise much but until the cash burn rate improves I think I will let this opportunity pass by until I see some improvement in the financials.

#Bull Case
Added 2 years ago

Pleased to see DOC had a decent 15.3% gain today without any news and on fairly decent trading volumes for a shortened trading day.

I have a theory that the rampant spread of the omicron variant in the UK will provide a significant tailwind for DOC for at least the near term. Reported more than 500,000 cases in the previous 7 days with restrictions re-imposed in Europe.

DOC appeared to be oversold recently so I added to my existing RL holding with a short term trade in mind. I'll look to exit the 'extra holding' on the 4th qtr results in January which should reflect increased consultations and revenue.

This is not my usual investment strategy but it looked to be worth a try.

Merry Christmas to all.