Datametrex - Undervalued Data Analytics "Canadian Palantir" Pennystock

WARNING: DD IS FOR A LONG TERM INVESTMENT AND THERE ARE NO OPTIONS

What is Datametrex?
Datametrex is a pennystock with a tiny 80M marketcap. It trades under $DTMXF in USD as OTC and under $DM in CAD on the TSX. They are a data analytics company that is gaining social sentiment as the “Canadian Palantir”. Datametrex is already profitable, cash-rich, and has zero debt. Pretty impressive for a small company like this, I think.

Only reason I know about this company is because my girlfriend’s dad really likes it, and this is his one and only non blue chip company that he invests in. So I took an interest, and have been following it loosely for the past year. Significant news for the company just came out, so I am compiling my notes in this thread in case anyone has something to add, and to neatly store my notes.

How do they make money?
Datametrex has 2 main sources of revenue as summarized:

  1. AI and technology contracts (specializing in data analytics related to social media analysis, use cases here: https://www.datametrex.com/use-cases), and
  2. COVID testing kits.

Let’s take a peep at their financials, courtesy of Koyfin:

Very quickly we can see that 2021 has been a stellar year for them, with YoY revenue growth in the hundreds and thousands of percent. However, this has largely been due to COVID testing. The impression that I got from scouring the internet is that investors don’t care about COVID revenues and are waiting for their AI and tech revenues to grow.

However, the COVID revenues have granted them an impressive balance sheet with 12.9M in cash and 0.1M in debt.

Here are their 2021 revenues to date, taken from their Q3 ER:

From January to September 2021, only 3.2M out of 40M in revenue was from AI and technology contracts. So this is the number that investors want to see grow.

Here are some existing clients and partners:

Brand New 40M AI Contract
Today, Datametrex announced that they were selected as the winner of a classified government contract with the Canadian Department of National Defence for full potential value of 40M. Datametrex Selected to Proceed on Government Project Worth Total of $40M

I think this is huge for a growing data analysis company with a marketcap of only 80M. Remember that in the first 3 quarters of 2021, only 3.2M in revenue was from this type of contract and this is the number we want to see grow. However, I’m not sure how many phases and over how many years the contract is as the information is classified. Regardless, I think being selected for such a sizeable contract is huge for Datametrex’s credibility and potential to win more contracts in the data analysis space with higher class clients.

Price Target
Ok this is the part I am not very good at. So bare with me and take below with a grain of salt.

At a marketcap of 83M, the stock closed at $0.184 USD per share, and has a Price-To-Sales ratio of about 2.1, based on an estimated annual revenue of ~40M.

For comparison, Palantir is priced at a Price-To-Sales ratio of about 21, and Snowflake is at 100 (which is ridiculously overvalued btw).

If we apply a conservative Price-To-Sales of 15 to Datametrex’s ~40M revenue, we get a market cap of 600M. Price target would be $1.38 USD per share, representing 7.5X upside.

Conclusion
Datametrex is a pennystock that could be one of those moonshot types. I’m probably gonna throw a little bit of money at it and see what sprouts out from it.

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It has run 45% the last 5 days, think we can expect a pullback ?

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I’m thinking a pullback to $0.16 at most, where it was previous resistance. Will be watching for an entry.

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The US ticker kept on going 17,98%.
While the CAN one only went 2.13 %.

How does that work ?
Shouldnt the value be somewhat similar ?

I really want to trow in a starter here, but been burnt before one stocks that have allready run lile this…

What indicators should I look for to jump in ?

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You may be looking at the wrong one.

DTMXF closed up 5.15% today and DM.V closed up 2.13% today. Fluctuations will occur due to the low volume trading. A few cents also makes a huge difference based on the stock price.

Taking a look at historical volumes, it looks like the Canadian ticker is way more popular. I actually used to regularly swing the Canadian ticker from 0.17 to 0.20 when it was stuck in the channel.

CAD volume

US volume

I’m gonna see if I can get a fill on the CAD ticker at 0.20, and may up the bid to 0.22 if the support holds.

I have support/resistance lines for 0.20, 0.24, 0.26, and 0.30 for the CAD ticker.
And 0.13, 0.16, 0.175, 0.20, and 0.25 for the USD ticker.

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Must have been something wrong with my view on the norwegian broker I use.
It shows the same as your numbers now :man_shrugging:

Thank you for the TA writeup, im really new at looking at TA, reading a lot…

If one of the tickers gets a lot more attention than the other, what happens then ? Will the price of both rise together ?

Good question. I actually don’t know how that works exactly. And I am not sure what to Google to find out. However, zooming out on both tickers they do look pretty much mirrored.

So it seems to be mainly for liquidity and access to capital.
It is expensive though, the company I work in was listed on NYSE at some point. We had to hire 50 people just to meet requirements of NYSE…

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Oh, they are trading at OTC so it seems that doesn’t require them to follow all the exchange rules.
Cheaper :slight_smile:

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Yea they are OTC for USD but on the TSX (Toronto Stock Exchange) for the CAD ticker. Today was a great entry if you got in.

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Was thinking of it, but did some other stocks first, and when this popped back up in my mind it was market close…
Will see how it performs in the next few day, will probably just trow a small long term bet on it.

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Jumped in on the CAD ticker at 0,19.
Putting these in the drawer !

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What do you think about their plans to uplist the company to TSX from the venture exchange ?
Will it include the stock into some indexfunds ? Which will bring more volume buying pressure ?

Yes that would be good news for DM. Not sure about inclusion in indexes as the marketcap is super tiny. Maybe some kind of Canadian small cap ETF in the future?

Not really related to Datametrex, but IBKR news feed on it is showing some nasty business on Desktop Metal Inc.
DM…

Oops I misread this earlier.

They’re already on the TSX.

But uplisting their US equivalent to an actual exchange will be good. They’ll need a higher market cap and stock price.

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Isnt it TSX venture ? Like a entry level exchange ? And they are upgrading to the main exchange, with more regulations.
I may have misunderstood though…

TSX is the Toronto Stock Exchange. I believe they’re the main stock exchange for Canadian equities.

The Toronto Stock Exchange is a stock exchange located in Toronto, Ontario, Canada. It is the 11th largest exchange in the world and the third largest in North America based on market capitalization.

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Yes its on TSXV, we have a similar exchange here in Norway for startups and from time to time very shady companies…
I once was in a small time oil company on the venture exchange here, and it wasn’t included in different funds that would have included it in the sector. Now I am not sure if it was to small cap, but the talks were that many funds don’t invest in the startup exchanges, so It would be seen as a catalyst if they moved to the mainboard or what’s it called in english.
The main exchange comes with a stricter set of rules in terms of audits and such, but will maybe give the company more eyes on it.

Datametrex Initiates to Move to the TSX Main BoardDatametrex
DATAMETREX GRADUATES TO TIER 1 STATUSDatametrex

Today they “graduated” into a new tier on the venture exchange, and they have started the process to move to the mainboard it seems.
I think this will be good, and they seem to have a good crew running their news dep !

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NEXALOGY SELECTED TO PROCEED TO THE NEXT PHASE OF CANADA’S DEPARTMENT OF NATIONAL DEFENCE INNOVATIONDatametrex

I like the update frequency of news from this company, and im adding in my forget account when I see some dips !

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