12-05-2012, 08:04 AM
Yes, it's rather curious. Could be tax selling, could be something more sinister. There really is no obvious reason to sell. There is some shorting, about 575.000 shares but out of 52 million shares outstanding this is hardly a big short position.
Lack of buyers is a better explanation, this isn't a very well known company. They're in the process of hiring a PR firm, I believe, that could help. What would obviously help is the first contract, which could easily be as big as their yearly revenue for Clip MPE.
With smallcaps, you usually have to look out whether there is any dodgy financing outstanding (many smallcaps fall victim to highly dilutive contracts with incentives for the lender to decrease the share price), but DSNY has nothing of the sort.
In fact, they have no debt and have a small profit and positive cash flow.
So it's sort of curious.
Lack of buyers is a better explanation, this isn't a very well known company. They're in the process of hiring a PR firm, I believe, that could help. What would obviously help is the first contract, which could easily be as big as their yearly revenue for Clip MPE.
With smallcaps, you usually have to look out whether there is any dodgy financing outstanding (many smallcaps fall victim to highly dilutive contracts with incentives for the lender to decrease the share price), but DSNY has nothing of the sort.
In fact, they have no debt and have a small profit and positive cash flow.
So it's sort of curious.