||EPS - Basic
||Market Cap (m)
|Electronic & Electrical Equipment
Real-Time news about Datong (London Stock Exchange): 0 recent articles
|checkers2: EV/EBITDA multiple would have to be a minimim of 5 for this transaction imho.
This gives share price of around 85p.
Large PE dealer Blackstone made buy out at average of 9.5/10 for 2012. Obviously for different / larger businessses.
But ratio here would be less given size, and market niche which is less transparent.
If a bidding war started it could go over 100p if the technology they have is really interesting, but not sure how cutting edge it is.|
|hezza123: Finally taken a small position here, so would welcome any details of your conference call DVI. :-)
Obviously all holders will know this, but for the benefit of anyone else reading, the share price currently represents a 23% discount to net cash asset value and a 33% discount to tangible net asset value.|
|deepvalueinvestor: Increasingly warming to the share after the announcement in December. They announced an r&d contract with margins of approx 45% but it is fair to say that they should be able to follow this up with kit orders where the margin is closer to 80%.
The problem with this company is its micro cap size, obvious secrecy surrounding clients (mainly special forces worldwide) and thin research coverage. 3rd party sales are also expected to dry up in 2013 and they may use some cash to diversify the business.
However, as a punt, a £7.5m contract over two years is a massive vote of confidence in a company only worth £5.5m and with £2.5m cash and no debt. A few contracts from our American friends would be helpful as 2013 progresses. It is surely not too far fetched to see the company trading on 15 times earnings if they can keep building the revenues and give us £2m of profit. This would equate to a share price of 240p, or six times your money. Pure speculation on my part but keep an eye out for future deals, especially if they are selling kit.
A small seller knocked the price today and allowed me to add at 37p. Interesting times.
|deepvalueinvestor: I guess the sleepy board reflects the £4.5m market cap and thin coverage. the only analyst covering is away. I will feel happier when I get more detail but I have been adding exposure today as the numbers suddenly look more interesting. let's face it a profit of say £1 million trading on a modest multiple of 8 plus the cash of £2.5 million would double the share price. it is a massive boost that someone has looked at the company and decided to place such a large order|
|smarkmmm: Share price now back to the level the day before the results of 7 December - a 16% pull back from the intra-day high of 68/63. Now cap'd at 7.6m with 2.6m of net cash - ie an EV of 5m for historic sales of 14m, and 16m forecast for next year.
Coe Group, in the same field, was taken over by Digital Barriers (DGB) for an EV of 0.9x sales, and other takeovers of surveillance hardware companies have been as high as 2.6x sales. MMI taken over by Cobham for 1.7x sales.
Investec have 46% of the shares and will surely look for an exit at some point.
In November Investec arranged a £30m placing for Digital Barriers for aquisitions in the area of "digital security and surveillance technology".
The market is valuing this company at little more than net assets exc. goodwill as though the technology is obsolete, and yet £2m spent on R&D each year and sales were up 80% last year. US sales coming back after the release of government budgets and typically make up 50-60% of total revenue.
PSR 0.36x; Forward PE 6x; EV/ebitda c.2x.
Company has court case ongoing (though provision has been made) and has been accident prone in the past, but a cautious market allows an entry at a bargain price.
|rainmaker: Guys, I wouldn't worry about a fund manager selling. Research has shown that the number of fund managers outperforming the benchmark index each year is roughly equivalent to someone correctly calling the toss of a coin.There could also be a non stock specific reason for the fund manager selling.There are very few exceptional fund managers with a great long term record that you should take notice of. Most so called active funds whose obvious is to outperform the market, are essentially just pseudo trackers.
Talking of tossing coins, has anyone read the Intelligent Investor by Ben Graham?Although he isn't credited as the co-author, Warren Buffett had a significant input in this book.I recommend that you buy the book or at the very least, borrow it and firstly read the speech that WB gave to investors in 1984 at Columbia University to commemorate the fiftieth anniversary of the Intelligent Investor-The Superinvestors of Graham-and-Doddsville. Buffett talks about the efficient market theory that in it's semi strong state says that all publicly available information is automatically and instantaneously absorbed into a share price. He then goes onto comprehensively demolish this theory through the use of an imaginary American coin flipping contest.
|stocktrawler: Yes, that purchase doubled his holding.
They have been through a tough time with the litigation and related hiatus in sales but seem to be returning rapidly to profitability which has yet to be reflected in the share price.
I believe this has all the hallmarks of a good recovery play.|
|eagle eye: It doesn't take much buying to move the share price.|
|tole: Hi Garth - missed your posts from earlier -
Taken off the IC website
Datong set for maiden divi
Created: 4 July 2007 Written by: Nigel Bolitho
Datong joined Aim in October 2005 at 128p and then committed the cardinal sin of issuing a profit warning three months later, causing the shares to fall by nearly a third. Fortunately the problem was delayed rather than cancelled orders. The share price has since perked up, and should go higher because Datong sells the kind of advanced intelligence-gathering equipment that's in demand right now.
Its main market is homeland security in the US. Last year, sales there more than doubled from £2.6m to £6m despite a weak dollar; broker Bridgewell reckons group profits would have been nearly 60 per cent higher but for currency drag.
UK sales were little changed at £2.8m, while delays in launching configured versions of recent products reduced European turnover by a quarter to £700,000 - and there were no sales elsewhere (£1m) mainly because of a lack of third party sales.
The good news should continue in 2007-08 with the company expecting another 12 months of "solid organic growth". The US market should stay buoyant and Datong ought to do better elsewhere with the help of increased research and development spend and new products to sell. They include a Situation Awareness System, two new and smaller radio frequency beacons and a new version of its vehicle tracking beacon. The maiden dividend is another sign of bigger profits this year.
Bridgewell forecasts 2007-08 sales of £11m and profits of £2m which could push earnings up to 10p - so reducing the prospective PE to 10.
DATONG ELECTRONICS (DTE)
ORD PRICE: 105.5p
MARKET VALUE: £ 14.6m
12-MONTH HIGH: 106.75p LOW: 85.5p
DIVIDEND YIELD: 1%
PE RATIO: 12
NET ASSET VALUE: 60p
NET CASH: £2.57m
Year to 31 Mar Turnover(£m) PTP(£m) EPS(p) Dividend(p)
2006 7.31 -0.59 -3.60 nil
2007 9.55 1.66 8.90 1.00
% change +31
Ex-div: 22 Aug
Payment: 21 Sep
BuyThat's a cheap rating for a company producing must-have products. Buy.|
|garth: Hi Rivaldo,
Thanks for your comments which are, I believe, pretty much on the button. I've taken a small stake in the belief that these could well see a 30% lift over the next few months. I'll consider adding more if they drift. They represent a modest growth opportunity and relatively low downside, IMO. That's what I'm after for at least some of my AST cash.
Pleased but gutted with AST. 8-bagger over 4-5 years looked almost a cert, IMO - and I would have been happy to wait. Still, its given me some cash to play with ;0)
I tried to buy HYD 3 or 4 times last week - with some difficulty. CAR are in my ISA and I may well move some of this year's allowance to add some more. CRPR is where the largest slice of my SMRT profits have gone. Currently around 240p - 350p-500p my target range, all on the back of Technical Fibre Products divsion. May take some time for the market to notice. Not without cyclical risks.
Small chunks have gone into WLF & CSR - I wonder if we might see some marginal increase in share price between now and Christmas on the back of the IPhone.
SMRT selling out has blown my investment plan right of the water - so I've spread some of the proceeds around and will wait it out a while. Not least because between 5 kids and promotion I'm feeling over-committed!!!
Thanks for your continued labours on the HYD & CAR threads! What's your view of Axis Shield at present?
Datong Electronics share price data is direct from the London Stock Exchange