DGDM enjoys already an optimistic market valuation, but yesterday the company announced that its revenues keep beating 2011 estimates and investors could get even more optimistic today. Further, the press release said that Digital Development Partners sales for March this year have exceeded $533,000 on the delivery of the company’s 3rd generation EFT Smartphones that were presented in a conference in Bangkok, Thailand just a few days ago. The company also says that an aggressive marketing is yet to begin today.
On the other hand, DGDM states in its latest 10-Q report it has limited revenues and operating activities as of September 2010 and will need additional funds to develop its business. The company also reports $8.85 million in total assets, whereby $8 million represent the acquisition costs of the worldwide distribution rights for the “EFT Smart Phone”, a new line of technology that DGDM acquired in February last year from EFT Biotech Holdings, Inc. in exchange for shares of DGDM common stock.
Thus, with no fixed assets and insufficient sales it looks like the sale of stock will remain the main source of cash for Digital Development Partners, which will not only cause shareholder dilution, but is also uncertain as the company may not be able to secure investors for its business.
What could improve the chances, however, is that not only DGDM new product will get a marketing campaign. Such has already started for the company’s stock as well. The first alerts have been sent out on Wednesday evening and have showed first results yesterday. DGDM got a volume record with over 370,000 traded shares and surged up to $0.23 during the day. More promo mails reached the market yesterday evening and their sender has been paid $15,000 for a two-day marketing campaign.
