|Deal Group Media
||EPS - Basic
||Market Cap (m)
|Software & Computer Services
Real-Time news about Deal Grp (London Stock Exchange): 0 recent articles
|run rabbit: I'm sorry but I would not have thought an informative thread containing the latest information is paramount to a ramp but all to their own. If the company delivers then this share price will look stupid in years to come. It has moved off it's lows and trading is light so it is relevant that it is drawn to potential investors radar.|
|nisbet: Jeffian the difference between .00000001p and worthless is 100%. The point I am making is that referring to this as an 8 to 12 month call option itself implies the speculative nature of the investment. There are many investors who pay a premium for call options with the knowledge that if the underlying share price does not rise then the option expires worthless. However, they buy with this knowledge and the same would apply to DGM. The operational gearing of this business when viewed against the current market cap of the company, is tantamount to comparing it with an in-the-money call option with with unidentifiable/questionable intrinsic value, except for the increasing visibility of DGM's growing penetration of its Far East/Sub Continent operations. If ever "caveat emptor" applies it is here. It's either a 5 or 6 bagger or a wipe out.|
The business was built very well in terms of market penetration/client build. Their downfall was all back office/computer system related. The share price is under a penny and until we see proof of break even by the end of the year not many will give the company the benefit of the doubt. If this is forthcoming then I think we might see talk of maybe £2m EBITDA for next year. The share price is pretty close to zero, so is discounting nothing. Lets look at the share price in terms of being an 8 to 12 month call option with the possibility of "exercise" = impied success and a 400% to 500% increase in the share price. On the other hand the "option" could expire worthless. The point is that there is little difference between .65p and worthless.|
|almosr: Interesting, azam......are you related to Moss?
I do hope they are doing better now, but I would hardly say that the historic performance under leadership of Moss can be described as "adept"....
Have we forgotten a share price once of 25p?|
|the blackster: I bought about a million at 1p a few months back which seemed a low to me. Last results going in the right direction. Australia, the key driver looks particularly good. The company grew in very similar circumstances the first time round. 2000-2003 recessionary talk was in the air, companies cut budgets and online grew as it offered low cost measurable marketing. The business does not have a track record of success once it has done well, however, it, and its management have a clear track record of building a company from low levels. Before the share price dived it went from 2 to 25p in three years. I believe there is a great chance dgm will deliver again, if not to the heady heights of the mid 20ps why not 10p+?
I see the Asia opportunity as similar to the UK 2000ish with one big difference. Asia has a lot more consumers and many more who are yet to consume online. dgm is benefiting from this already and may well score big over the next two years.
FYI - I own a substantial holding and have done for a long time.|
|badday: From Growth Company Investor
Re-positioning away from its UK operations to focus on the faster-growing Asia Pacific markets Deal Group Media has meant fundamental and expensive reorganisation for the company.
The group recorded a post-tax loss of £6.9m in 2007 after selling 51% of its UK operations to management for £1.5m cash leaving it with an 'undiluted focus' on Asia-Pacific through its Australian business. This arm is profitable and hoisted sales 49% to £8.5m during the year, also launching satellite operations in India and Singapore.
DGM provides search engine and affiliate marketing services for advertisers, and sells advertising on behalf of a network of media owners. It is exporting this business model throughout the Asia Pacific region and has now relocated the UK team to Australia. The region offers a lower cost base than the UK and comparatively less competitive and complicated markets.
Chairman David Lees points to Asia's 39% of global internet usage and says the market is still 'early stage' in terms of the penetration of digital advertising. He believes this will allow the company to quickly create substantial market presences in 2008 with new regional offices planned for Hong Kong, the Philippines and Malaysia.
With the new positioning offering positive results and 49%-owned UK operations now regarded as 'discontinued', DGM is in a good place to use its expertise to create a market-leading role in its new market space. The share price has suffered over the past year and sits at 1p, down from a 2007 high of 3.75p. The future looks brighter down under and if you held on so far we recommend keeping watch for a little while longer at least. Hold.
|the blackster: BIGBOOBS - I'd put that cash of yours into your bid for global pharmacy domination if I was you.
Here's another idea. The faster growing, higher potential side of the business namely Oz and Asia now have cash to get moving. Remember Mr.Moss had created two successful start ups from zero: 1. the UK 2. Oz and whatever the UK history since, the man has proven this is something he is good at. Add to this his sizeable bet on the company - he put a few hundred grand of his own cash in last year - I'd wager the overseas business will get nicely off its feet and continue to perform - check OZ figures out. Besides ITS and Porter can afford to give dgm a cut price deal and not worry too much about ITS profits as the cheaper ITS can get its costs for dgm, the better dgm performs, the better the share price and the better the return for all. The stock was higher at its IBNET low in 2003. At 1p I'm betting there's upside. There you go, now that really is BIGBALLS for you, eh BIGBOOBS?|
I think it is worth pointing out that Adrian Moss's interview is within a web site that most investors both intitutional and private client just would not access.
A small number of people voicing concern as to why the share price has not reacted positively will be of no concern to AM. And in this respect I would have to concur, because I believe that AM's function is to ensure that within the next 18 months or so dgm becomes a major player in its field. The share price will then look after itself.
Although I have a serious holding in dgm, the recent share price decline has afforded me the opportunity to buy another 500,000 shares. If this time next year we still have a share price stradling 3p, I will be voicing concern because that will indicate that the "business plan" is not working.
In conclusion, based on everything I observe, both within the industry and from the content of AM's observations I believe the dgm share price to be anomolous. In January 2008, or before, my recent decisions to add to my holding will either look very foolish or very astute. We all make our own decisions.|
|reggieperrin: thankyou2 - hate to think where the dgm share price would be now if it wasn't for i-spire buying big chunks since the profit warning ... your post makes good sense and their buying could also be to reduce the chances of dgm being taken out at a low price by an opportunist given that there have clearly been very big sellers at low levels since the warning ....|
|haystack iv: Does anyone have a view on just how far the meteoric fall in the DGM share price can go? Some people have suggested as low as 0p.
It is instructive to take note of the fact that 'meteors' fall and do not rise!|
Deal Media share price data is direct from the London Stock Exchange