DD needs fresh capital more than transformation announcement

On 19 November 2021, DoubleDragon (DD) announced that it had transformed from a property company to an investment holding company.  To signal its transformation, it dropped Properties in its name to just DoubleDragon Corporation.

It seems that the market did not buy the transformation announcement.  DD continues to slide, hitting a 52-week low at 8.86 apiece.  DD entered the oversold category.

Fresh from raising cash at the DDMPR REIT offering, DD at the end of the 3Q 2021 has a cash balance of 7.3 Billion. A 7.3 Billion cash balance looks hefty, but hey, look at the current maturing debts; it’s 16.7 Billion.

Cash flow from operations is negative. It looks like DD will have to tap its bankers again to pay its maturing obligations and fund capital expenditures or get a fresh capital infusion.

It may take more than just lip service from the legends Tony Tan Caktiong and Injap Sia to stem the DD share price slide. It may take a new money announcement from them to turn around the DD slide.

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