Daily Internet Share Discussion Threads

[aishah] 31/3/2014 11:37

Sanlam reiterate Buy with 3p target. Bolt-on acquisitions should propel this even further. dyor

[leopold555] 31/3/2014 10:01

"Pre-close Trading Update in respect of the financial year ended 31 March 2014 in April 2014."

Looking forward to that trading update :-) Abby does not mess about!

[leopold555] 31/3/2014 09:59

I like this bit
"Netplan's revenue growth following the acquisition has been ahead of management's internal expectations following new customer wins and increases in contract sizes with existing customers. Daily Internet was also able to rationalise costs across the enlarged Group following the acquisition and as a result has reduced overhead costs and improved Group EBIT"

[leopold555] 31/3/2014 09:34

Got another 200k

[nw99] 31/3/2014 07:09

"The acquisition of Netplan is pivotal to Daily Internet's strategy of becoming a one-stop-shop provider of IaaS hosting and cloud services covering the entire value chain. We are delighted that Netplan is performing well, and its pipeline of opportunities gives us confidence in its continued strong growth. The new US customer contract underlines the growing global demand for Netplan's core PCI and DR hosting products and expertise."

[ashtree2] 29/3/2014 19:41

The jan 27th rns states that £625,000 was raised but only £150,000 spent on aquiring Namehog.That would leave £475,000 over to be used for possibly further aquisitions.Correct me if I have missed anything.

[poacher886] 29/3/2014 19:21

Yea, i've seen that news before...confirms to me what i thought..no fast instant millionaires here, but a nice slow steady gain over the coming years. One for the investors rather than the traders.

[leopold555] 26/3/2014 23:42

Thanks montynj very interesting :-)

[montynj] 26/3/2014 19:05

It's when it's boring is the time to accumulate. Right now it's still below investors' radars. What the company is doing is far from boring and soon the market will realize. Here is what the renowned Sharewatch says:-" (Sharewatch) On SCSW we have a bit of an aversion to penny shares. Most weeks we get invited by two or three such companies to look at their prospects. We usually take a cursory glance to be polite but almost always decline to go further. Buy-sell spreads are always too high and most of the business plans are on a wing and a prayer.Daily Internet (DAIP; 1.88p) is one of those that looks like it might have something there however. Managing director Abby Hardoon likes to describe Daily Internet as an Iomart (IOM; 259p), albeit an early stage one. He would say that. Iomart has been a successful recommendation for SCSW; the business started off with several data centres, a domain registration business and then began to acquire managed hosting firms. In the process, the shares grew from our recommendation at 44.5p in January '10 to top out at 324p last October.We can't promise Daily Internet is going to do anything like this but the omens are good. Hardoon previously established Host Europe in the managed hosting/datacenter sector in 1997 and grew that business organically and by acquisition before selling to Pipex in 2004 for £31m (by which time revenues were £17m). It wasn't happy moments towards the end with a boardroom brawl amidst allegations of office affairs, which eventually led to the broker resigning.But Hardoon has dusted himself off and the plan, with some of the same team in place (including the finance director and operations manager), is to repeat the exercise.Like all the data centre/managed service operators, Daily Internet is benefiting from the fact that global data traffic has already grown fourfold in the last five years and is projected to triple again in the next five driven by the growth of smartphones, laptops, tablets and PCs. Companies all need to host their data somewhere and they do this either in their own data centres or outsource the service to specialists. At the same time, speed and connectivity is also increasing, which means devices are consuming more data so a bigger infrastructure is required.Daily Internet was established in 2006 and spent the early years listed on PLUS before transferring to AIM last year. At the time, from its single centre in Nottingham, its mainstay was the provision of domain name registration services (supplying and managing the registration of internet names for customers), email services and mass market hosting services (hosting multiple customer websites across single servers).With around 60,000 customers Hardoon says it is the 12th largest business of this kind out of a marketplace of around 2,500 suppliers. To us, it's an OKish area but not an especially exciting one to be involved in. Everything is generally automated so customers can sign up to the services themselves but average revenues per user are low (£7-£280 per year) and Daily Internet had generated sales of just £1.56m. But fortunately Hardoon has already completed two acquisitions. Smaller of the two is Namehog, a lookalike business to Daily, which it bought for £0.15m (which after removal of duplicated costs should equate to around 2x profits).But in October Daily Internet completed the much more interesting acquisition of ten year old Netplan for £2.5m plus a £750,000 earnout based on future profits. To fund the deal it also placed 200m shares at 1.5p. In 2013, Netplan generated sales of £1.3m and made £0.6m profit, so it looks an attractive price.Netplan is at the pinnacle of the hosting market by providing dedicated servers (servers leased entirely to one customer) together with managed solutions aimed at high volume online businesses where users typically pay between £600 and £20,000+ annually on contracts that span one or two years.  Its growth has recently been driven by its PCI capability (Payment Card Industry Data Security Standard) to meet the most stringent security standard for those who take credit card payments. Call centres, for instance, now will pass you over to an automated system to take your card details to ensure they are not stored or recorded. Similarly for payments over the internet, VISA have a set of stability/security requirements for data storage. Netplan has had the highest level of PCI compliance since 2009 (Level 1 - for those with over 2m transactions a month) and this has been behind its rapid growth.Post the deal there are 407m shares in issue giving Daily Internet a market cap. of £6m.  The acquisition means Daily Internet as a whole should move into the black in 2015, with Sanlam forecasting" £0.4m pretax (eps 0.08p) on sales of £4.25m and with most of that income being repeat in nature, Daily Internet has a good platform to build on growth in subsequent years.I think Sanlam's forecast is on the high side given they only expect sales of £2.7m this year but Iomart has shown what might be possible and the shares are an intriguing, albeit somewhat speculative, buy.

[leopold555] 26/3/2014 18:01

bit boring this share isn't it?

[aishah] 26/3/2014 13:23

Iomart updated today. A snippet from TechMaketView:
"Management says that for the full year the company delivered "strong organic growth" – which has been supported by "good performances" in the acquired businesses.

The hosting business (i.e. not the Easyspace web business) saw organic growth of 20% in FY12, and registered 17% growth in H1 of this year (iomart marches on in H1) – so could be on for a comparable performance, depending on how the second half shaped up, of course. Adjusted EBITDA is expected to come in at £23.6m in FY131 – up from £16.4m in the previous year. "



Bodes well here - Son of Iomart said SCSW last issue. dyor

[leopold555] 24/3/2014 14:48

Quiet on here, is there just a few of us invested in this, seems like there are no trades in it at all acording to m-oneyam

[tiltonboy] 24/3/2014 14:15

There is a trade showing on ISDX of 217,822.

[leopold555] 24/3/2014 10:40

I have dipped my toe in and bought 200k though it does not show on the buys :-)

[poacher886] 16/3/2014 12:08

Interesting share, though i do perhaps and certainly with recent activity think the immediate potential already priced in. I think it will come good med / long term for those that can sit on there hands. I think COMS / VMP / CTP have the fast money in the short term though.

[maryhopkins] 12/3/2014 08:55

How many MUGS were caught with their pants down by LIQUID MILLIONAIRE PUMPING AT 5p+?

[nw99] 11/3/2014 20:50

This us a very good sharewatch idea

[flashheart] 11/3/2014 16:51

It is looking good. A small break out perhaps?

[liquid millionaire] 11/3/2014 12:50

DAIP chart imho looking very good.

[onjohn] 11/3/2014 11:14

Time Price Qty Type Bid Offer B/S Total Buy Total Sell
10:38:00 2.17 200,000 O 2.00 2.25 Buy 575,000 500,000
10:36:06 2.18 200,000 O 2.00 2.25 Buy 375,000 500,000
10:25:50 2.18 15,000 O 2.00 2.25 Buy 175,000 500,000
10:14:39 2.19 60,000 O 2.00 2.25 Buy 160,000 500,000
09:52:05 2.13 100,000 O 1.75 2.25 Buy 100,000 500,000



Good buying

[aishah] 11/3/2014 11:06

I have been a SCSW subscriber for many years and can't recall such a penny stock rec. They would have talked to the Co. at length. More acquisitions in due course as Hardoon executes buy and build. Good IIs on board. They'll get some new gTLD business too (potentially 60,000 customers to target):


Mkt cap at 2.25p is only £9m. Imo, dyor

[montynj] 11/3/2014 10:31

This stock is poised to fly now that Scsw have recommended it

[onjohn] 11/3/2014 10:09

highest level since Oct

somone bought 500k

gap on chart to 4p

[liquid millionaire] 10/3/2014 16:05

Thanks flashheart