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DGS Digital Globe

59.00
0.00 (0.00%)
03 May 2024 - Closed
Delayed by 15 minutes
Digital Globe Investors - DGS

Digital Globe Investors - DGS

Share Name Share Symbol Market Stock Type
Digital Globe DGS London Ordinary Share
  Price Change Price Change % Share Price Last Trade
0.00 0.00% 59.00 01:00:00
Open Price Low Price High Price Close Price Previous Close
59.00 59.00
more quote information »

Top Investor Posts

Top Posts
Posted at 21/10/2016 09:59 by yump
Yep. There won't be competing offers either as TRGI have a large 'poison-pill' shareholding.

Most companies don't come to market to make money for new shareholders, but there's a big difference in the level of risk that they are passing on and the way they explain what they are doing and keep investors informed.

Clearly this lot wanted access to capital and felt no obligation to keep new investors informed properly, particularly wrt how the 'expansion' was going.

In retrospect, I don't think they had a very secure arrangement with their big customers in the US. I've provided new customers for some large businesses that have merged. If you are actually important to them, you don't lose business, because they don't want to switch off their new customer supply.

So the merger stuff I think was an excuse for not actually being as good as they said they were. Not the first time I've seen exaggerated claims from US folk, by any means and know plenty of others who have experienced the same.

Once went over there to see some new fangled equipment they were going on about, that turned out to have a design and control that we threw out years ago.

Snake oil etc. etc.
Posted at 21/10/2016 08:18 by pj 1
3 year PI shafting imo

edit- 3 year Investor shafting
Posted at 04/10/2016 17:08 by yump
They're a bunch of BSers. The elephant in the room is this:

$7 increase in revenue and FLAT gross profit.

Then talking about the increase in costs being an investment in the future. Which is true of the overhead investments, but not true of the cost of sales increases.

Cost of sales is directly related to sales volume, if volume goes up, costs go up.

Lead generation and Search engine costs are variable costs from day to day, or perhaps month to month. They are not an investment in the future. Possibly, some of the $1 extra on call centres could be viewed as investment in some way.

imo the model is broken, which is why they are off into new markets. One unnamed, unspecified mobile signup in the UK and one in Europe over 4 years. No volumes, no $$ mentioned.

Same old isn't it ?

Sometimes businesses run into trouble and are open with investors. Not this one imo.
Posted at 14/7/2016 10:50 by yump
They came to market with good figures and a good story and an apparently good business plan, but unfortunately it became apparent that they had no intention of keeping investors properly informed, quite a long time ago.

I thought there was an outside chance of getting some of my investment back at say 100-150p. That looks highly unlikely now.

Unfortunately, there has already been a period of investors trying to spot the bottom, in the hope that they will rebuild, but that appears not to be likely.

Thanks to their lack of investor information (dishonesty?), the future may hold promise, or not, but as far as I can see, nobody will be given a clue, so may as well toss a coin.
Posted at 06/4/2016 11:10 by yump
oregano

Yes, although I need a big permanent rise to get me into profit, rather than one that appears to be based on some tips, plus stock scarcity, plus traders just buying to dump near 100p. That always gives powerful momentum.

Whether I'll hold on for any long term growth, not sure, as the business model is changing, so more difficult to keep track of. Depends a lot on how open DGS are about their progress outside US and more importantly, how the costs pan out, given their changing nature.

Next set of results should show it, but I don't like just relying on the next set of results to figure out my investments - I'm a shareholder - I want more information inbetween and I think that does reflect the attitude of BOD's towards investors.

I'll give them credit for not indulging in long-winded BS though. It would be quite easy to do with a tech. company.
Posted at 17/3/2016 09:24 by yump
Haven't you done any research of your own ?

As a growth investor, I suggest you do.

I'm sure you're aware as a long term buy and hold investor, that traders will take a short term view and action, while quoting long term growth possibilities.
Posted at 16/3/2016 21:33 by yump
Growth has not resumed. In a year, pretax and earnings will be about the same as they were in 2013- 2014. That will be 4+ years on.

I've lost count of the number of times stocks with low p/e's are touted as growth stocks when IN FACT there is a reason for the low p/e. In this case a major hiccup.

In the case of Chinese stocks, a series of disasters, while frequently being touted as having low p/e's but 'look at the growth'.

Same with Israeli stocks. Such low p/e's, so they're a bargain.

So if anyone is buying in here for genuine long term growth, please have a look at the way the business model seems to be changing. Consider whether there is reasonable progress in the new markets that were going to lead to growth (I don't mean just revenue growth).

One thing is for sure. Traders have a vested interest in getting long term growth investors to buy in.

But they will be out before any evidence of real growth that you are looking for emerges (or has a chance not to).
Posted at 10/3/2016 08:30 by yump
I'm afraid the old one about not giving away company secrets is complete hogwash.

I am in the PPC market and believe me, competitors will have analysed what DGS are up to far more than any detail DGS are ever likely to give to investors.

Red herring.

Europe was and is supposed to be an area they are wanting to grow in. A report on that progress, or lack of it, would be the norm for investors.

They could easily tell investors whether the accelerating growth for the last 12 months is continuing or not. Not just do a 'confident we'll meet' statement.

They could tell investors the size of the market they are having a go at grabbing. They could explain why lead generation costs jumped.

The list goes on.

Companies vary between bare minimum information to investors and as much as they can tell. This is the former. SRT is the latter.

They get away with it because they are US and they floated here, so a few titbits now and again will do.
Posted at 10/3/2016 07:53 by yump
I went straight to the outlook statement, which imo is generic.

Apart from this: "we are confident the markets we serve will continue to grow at tremendous rates". Which markets are those then ? Its not the client markets.

In fact I think they are referring to the US PPC market:


Would be nice if they actually gave investors that information, rather than the 'make a statement - take it or leave it' approach.

...and if the markets are showing tremendous growth, where is DGS's growth ? Their's may well be record growth for them, but it doesn't match the market growth they are quoting. The excuse is the merger disruption I expect.

...and don't go quoting growth off a dip - that's misleading.
...and how did that large mobile customer get on ??

I think this lot have a very arrogant and detached approach to their investors, which isn't a surprise really.

The next half is the critical one to assess whether they really are growing to match the 'tremendous' market growth.

Seeing as they have not much information about growth since the end of the first half (eg. its continuing ?), I guess it will be finals before anyone can assess whether they are growing much or not.
Posted at 16/2/2016 10:04 by yump
If anyone here is seriously invested I suggest you look very carefully at all the figures you can get your hands on.

For example, they are comparing like with like here. Its factual, but misleading:

EBITDA is expected to be between US$2.2M - US$2.4M, an increase of at least 400% (H1 2015: US$0.5M). (Sounds great doesnt it ?)

From the finals:

Adjusted EBITDA* $3.0M (FY14: $5.4M) with strong second-half recovery to $2.5M (H2 2014: 3.28M)

So actually this half EBITDA is less than the previous half.

The first half to compare against is 2014 which was $2.3mln.
So its up 10% against that. Which it should be after all this time !

As I mentioned quite a long time ago, they are moving from the model I bought in for (managing paid search spend), into using lead generation in some form. Which is why lead generation expenses had a massive jump last finals.

Unfortunately, the information coming out of DGS means it will be finals before any real conclusions can be reached.

EBITDA looks like it will be back to 2014 levels.
However, the big BUT is that revenue will now be around 10mln higher at least.

So they may well have gone nowhere since float in terms of pretax profit, despite their main clients recovering from the merger disruption.

DGS needs some serious top-line growth. I guess it might recover to a reasonable share price level though - say a p/e of 10 after finals.

Still don't like their mushroom management of investors though.

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