Thoughts on DGL please
Thoughts on DGL The CEO owns a huge 50% stake in the company and they seem to be trading at a pretty large discount to NTA. The share price has had a very rough year!
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Hi Chris,
For subscribers not familiar with DGL, its a $230mn Victoria-based specialist chemicals company. The company manufactures, transports, stores and processes chemicals and hazardous waste. The stock has fallen over 80% from its 2022 high and is currently languishing close to its all-time low. The founder Simon Henry actually owns more than 53% of the business and while we are fans of management who have skin in the game its unfortunately not a guarantee of success.
In this particular case mgt. look to have made a few errors over recent years but the share price looks overdone, the companies FY23 result of EBITDA: $64.1 million fell within guidance but was a decline on the previous corresponding period. Importantly we are not very familiar with this business but its clearly lost investor confidence and we see no reason to be considering the stock without a fresh catalyst.
