Intel certainly didn't make an equity investment in this company
for nothing. Then again, it is a small one(under 100 million). Nonetheless, INTC is looking for new areas to increase its growth, which is virtually zero right now, and it seems that DSLGF has the market clout and growth potential they're looking for. The widespread use of special effects are obvious to anyone who watches TV and goes to the movies on a regular basis. This company has managed to successfully(up to now) engineer a turnaround without outside assistance, which few management teams can boast of being able to do
(ex: Chrysler got billions from the government). I agree that a communication is an essential management skill, but I prefer companies
that can deliver results instead of just using talk to drive the stock price up. In the long run, companies in the first category tend to outperform everyone else, and I believe that DSLGF is one of those companies. The stock might not have touched a bottom just yet, but I feel that this is a decent opportunity to accumulate shares at a cheap price. By the time next quarter's earnings come out, this one will be a lot higher than what it is now.
Regards,
Ming
P.S. One analyst, according to Zacks, downgraded the stock to hold/neutral. Consensus earnings for the next 2 years were also slashed. This, in my mind, is bullish for DSLGF and highly indicative of the herd mentality that permeates Wall Street these days. Watch them upgrade the stock when it reports strong earnings in the next few quarters. |
