Jul. 9 at 5:47 PM
$DLXY $SPY
Ipo at 4$ offers a good upside.
Why DLXY Could Be a Hidden Gem
1. Strong Revenue Base with Modest Profitability
• Generated
$316.7 M in revenue over the past 12 months with a net income of
$0.39 M (~
$0.02 EPS) .
• Demonstrates a profitable trading model even at micro-cap scale, with a 316 M USD topline on just 11 employees — showing exceptional leverage and scalability ().
2. Strategic Footprint in High-Traffic Regions
• Based in Singapore, a global hub for refined product trading.
• Operates across Southeast Asia, East Asia, and the Middle East, tapping into high-growth emerging markets  .
3. Efficient Business Model
• As a trading firm, Delixy maintains a low headcount and no capital-intensive operations — it’s asset-light with high revenue per employee (~
$28.8M) .
• Their in-house financing enables extended 90-day credit terms to customers, improving sourcing competitiveness .
4. Capital Raise to Fuel Growth
• IPO at
$4 per share, raising
$5.4M in gross proceeds, with no dilution from insiders ().
• Funds earmarked for diversifying product offerings, potential strategic acquisitions, and working capital — signaling growth ambition .
5. Realistic Valuation with Upside Potential
• Micro-cap valuation (~
$70–86 M market cap) with a P/S ratio of ~0.2×, suggests the stock is deeply undervalued given its revenue scale ().
• High enterprise leverage: small equity cushion amplifies upside if earnings and margins improve.
6. Compelling Micro‑Cap Opportunity
• Market’s appetite for well-managed micro-caps remains strong — they can outperform when execution surprises on the upside ().
• With a tight float (16.35 M shares outstanding) and potential for volume trading, DLXY could see elevated volatility in its favor.
Note:?This is not financial advice—invest at your own risk.
