Supercomputers powering the future

Brad Holland

Brad has over 20 years experience in the Australian and US equities and options markets. Brad specialises in equities and options for capital growth, income generation and capital protection. He also specialises in finding opportunities in small to medium cap stocks. Brad holds RG146 - Securities & Managed Investments and Accredited Derivatives Adviser Level 2 qualifications.

November 21, 2023

DUG.AX | High Conviction Report

Today we are going to enter a position in DUG Technology Ltd (DUG).

This company operates in the HPC-as-a-service space. Now before we go down a rabbit hole of acronyms about computer processing, DUG provides supercomputing technology both software and hardware to customers who require high-performance supercomputing power to solve complex data calculations. The company provides data and analysis, including coding support and algorithm development.

The company’s service is utilised heavily in the oil and gas space (materials sector). They do geothermal analysis which helps customers know where they can achieve the best outcomes from drilling. To use an analogy measure twice cut once.

We are taking a position today for several reasons:

  1. The share price has consistently been trending higher since the start of the year.
  2. On the 30th of October the company released a Q1 FY24 business update with all the numbers pointing in the right direction DUG Q1 Business update
  3. Major shareholders buying more shares. Regal Funds Management on the 17th of November increased their holding in the company to 12.41% from 11.19%.
  4. Director buying – on the 11th of September a director purchased another 30,000 shares at $1.82

Taking all of this into consideration and the strong move from the share price, braking through $2.00 today we are going to take a position.

TRADE ACTION

Quantity: 2,500 shares

Entry: Buy up to $2.10

Stop loss : $1.75

Target price: $2.60

This is general advice only. MF & Co Asset Management has not considered your personal financial needs, objectives or current situation. This information is not an offer, solicitation, or a recommendation for any financial product unless expressly stated. You should seek professional investment advice before making any investment decision.

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