What Is Deal With Dais - Lack of Volume? 
Posted: 05 August 2010 10:07 AM   [ Ignore ]  
Total Posts:  49
Joined  2008-05-06

August 5, 2010 - We were asked by a couple shareholders of Dais Analytic Corporation about the lack of volume traded in the stock, and whether this is, in fact a ‘real’ company. We think it is. Below is the question (names and key data excluded for privacy purposes and our response):


hi ~

we would like to know whats the latest and what are you and your firm doing to get dlyt in more shareholders hands?  the volume is pathetic!

seems as tho since tim got the 200mm contract, the stock spiked for 2 days and is now at a whopping 35cents!..........

we were under the assumtion that we have a REAL company here and that tims technology is truly “cutting edge”......i know things dont happen overnite.....but========= whats in the NEAR future and do they have earnings and the status of the BIG contract?  regards

SCP Editor:

Thank you for reaching out – currently there are less than 500 shareholders. Our rule of thumb is that it until we get to 4,000 or so shareholders the stock will not trade with any real liquidity, so our goal is to get there. Our plan consists of working with the company to:

• Create more steady news flow demonstrating that the company is making progress and setting reasonable expectations with the Street
• Getting out to more investor conferences and events – announcements on this front to come
• Staying consistent with road shows – plan to do at least 2-3 annually – just completed NYC, Boston and West Coast

To your point, this is a real company. I am extremely upbeat on the prospects of the business. My sense is the Street is discounting the announced contract to inner Mongolia by 100% and until we demonstrate (book) revenues from that contract in our financial statements that risk discount will persist. However, when we do start booking those revenues I think this will be a significant shift in terms of how the company is being valued.

Right now, the Street is looking at the stock based on ttm (trailing 12 month) performance which is about $1.5-$2M, so a $10.5M valuation may look even a little top-heavy (against peers in the alt energy and clean tech sector) on a P/S basis. But if that China contract ($48M) is real, which we believe it is, then think about this. If a business wanted to purchase Dais, and did its diligence to confirm the credibility of the contract, then a transaction would likely happen at about 2x-3x EBITDA of the business (acquirerors typically want payback in 2 years at the outset).

At 30% GM, the China contract represents about $10-$11M in EBTIDA, all things being equal. 2x-3x EBITDA would be $20M+ (double the current stock price) on the low end, and this is not taking into consideration the ConsERV business, which on a stand-alone business is about at cash flow break even and projected to grow by triple digits over the next couple years, and the Intellectual Property (patents) that the company owns.

In any case – this stock has tremendous upside. The analysis above is based on a single contract to a single water treatment facility. There are hundreds being built in China in the next several years. Water is a huge global issue. Dais has a better technology to support efforts in treating water and in desalination.  This is the story we are communicating. It will catch on, and investors that get in early will, in my opinion, be rewarded!

Please don’t hesitate to contact me if you have further questions, and I appreciate your candor in your questions.

Important Disclosure: This information is intended to assist investors.  The information does not constitute investment advice or an offer to invest or to provide management services and is subject to correction, completion and amendment without notice.  Any such offer, if made, will only be made by means of a confidential prospectus or offering memorandum or management agreement.  It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future results or expectations.  As with all investments, there are associated risks and you could lose money investing.  Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment.

SCPEditor is managing partner of Aspire Clean Tech Communications, a corporate communications and strategic advisory firm to alternative energy and clean tech businesses. Aspire is engaged by Dais Analytic Corporation to perform related services.

Posted: 31 January 2011 03:43 AM   [ Ignore ]   [ # 1 ]  
Total Posts:  1
Joined  2011-01-31

That is a great post, thank you for sharing that information with us.
I’m Melissa from Australia. I’m new on this forum. Nice to be here.
I hope to meet great people here and learn a lot from you.

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