Destiny Media’s CFO Appointment: A Contrarian Buy at a 41% Discount

Investors, here’s a rare opportunity to buy a TSXV-listed SaaS firm with 86% gross margins and 6.3% revenue growth at a 41% discount to its year-to-date high—thanks to a temporary regulatory stumble and a CEO change that’s actually a goldmine. Destiny Media Technologies (DSY.V) is primed for a turnaround, and its new CFO, Assel Mendesh, is the catalyst to unlock this undervalued equity. Let’s dive in.

Why DSY’s Stock Is Cheap—But Not Broken

Destiny Media’s YTD stock decline stems from a Cease Trade Order (CTO) imposed in early May 2025 after it missed a filing deadline. The suspension spooked traders, but the company quickly resolved the issue by filing its Q2 results. Now that the dust has settled, the real story emerges: a scalable SaaS business with $3.2M in assets, a current ratio of 4.86 (vs. an industry median of 1.77), and a product suite—Play MPE® and Music Tracking Radar (MTR)—that’s gaining traction in the $35B music tech market.

Assel Mendesh: The CFO Who Will Fix DSY’s “Leaky Pipeline”

Mendesh’s appointment isn’t just a PR move—it’s a masterstroke. Her 15-year track record at Corza Medical includes three key wins that align perfectly with DSY’s needs:

1. Cost Efficiency: At Corza, she slashed operational costs by 22% through process automation and cross-jurisdictional reporting harmonization. DSY’s Q2 net loss ($0.3M) was largely due to one-time litigation costs—a problem Mendesh can excise by tightening expense controls.

2. Cross-Border Reporting: As DSY expands into the U.S. and Europe, Mendesh’s expertise in navigating multi-jurisdictional regulations (think GDPR, SEC filings) will prevent future CTOs. Her past work ensured compliance while reducing administrative overhead by 18%.

3. Acquisition Integration: DSY’s recent MTR platform rollout is a $20M+ opportunity, but scaling it requires seamless integration. Mendesh’s track record of merging acquired tech stacks into profitable units—without disrupting core operations—gives investors confidence this won’t be a cash drain.

The Numbers: Why This Is a Buy—Not a Sell

Critics cite DSY’s Q2 net loss, but they’re missing the SaaS flywheel. Revenue grew 3.3% YoY in Q2, and MTR’s sales surged 20% QoQ. With Mendesh’s focus on:
- Automating sales processes (target: fully hands-off by late 2025),
- Optimizing gross margin (86% vs. a 78% industry average), and
- Re-allocating cash reserves ($1.2M in Q2),

DSY could flip to profitability by Q4 2025. Meanwhile, its $399K EBITDA (despite the loss) and 4.86 current ratio mean it can weather any short-term storms.

The Contrarian Play: Buy Now, Cash In Later

Here’s why this is a buy at C$0.68:
1. Undervalued Equity: DSY’s P/S ratio is 0.3x—a 50% discount to SaaS peers. At full MTR rollout, this could double.
2. Liquidity Cushion: With cash reserves covering liabilities 4.86x over, DSY isn’t a “cash burn” story.
3. Catalysts Ahead: Look for Q3 updates on:
- MTR’s scalability (target: handling $1M+ in monthly transactions),
- Play MPE’s new checkout system boosting client retention, and
- Mendesh’s cost-cutting metrics (target: 15% OpEx reduction by 2026).

Final Call: This Is a 2025 “Cramer Classic”

When you see a SaaS business with 86% margins, a CEO who’s a turnaround specialist, and a 41% pullback from its high—it’s time to act fast. DSY’s stock could rally 100%+ in 12 months if Mendesh delivers on her mandate. Buy now—before the crowd catches on.

Bottom Line: Destiny Media isn’t broken—it’s been beaten down by noise. With Mendesh at the helm, this is a contrarian buy at a fire-sale price. Don’t miss it.