|Absolute rip off, glad I'm long out off this one. Yet another overseas disaster.|
|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.|
|3 year PI shafting imo
edit- 3 year Investor shafting|
|TRGI to buy DGS back.
No prizes for guessing what may have gone on here.
Or was it just the 'normal' passing of risk of expansion to the stock market instead of TRGI ? It depends whether you think DGS actually had a properly researched expansion plan I guess, as they have made very few inroads into any new markets.
Or was the clue in the total lack of detail year after year ?
"DGS, which was originally a wholly-owned subsidiary of TRGI, listed on AIM in February 2013 at a listing price of 159 pence per DGS Share. The purpose of the listing was to provide access to capital and raise the profile of DGS and accelerate the expansion of DGS's business to new geographical markets and industry verticals."|
|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.|
|speedsgh I agree.......and quite rightly imo after news flow like this.....
Results -We have already resumed profitable growth in the second half of the recent fiscal year and expect to maintain this momentum in the year ahead
12-11-15 AGM-As we approach the end of the first half of our financial year trading is in line with market expectations for the full year and we remain positive about the Company's future prospects
16-02-16 TU-As a result, the Board is confident in meeting full year market expectations.
10-03-16 HY-We are pleased to confirm that the strong trading momentum from the second half of fiscal 2015 accelerated into the first half of the current financial year, with this period marking our strongest first half performance to date. With our strong balance sheet and healthy profit generation, the Board is confident in continued profitable revenue growth.
07-04-16 Anthony Watson NED, has exercised options and sold 33,416 @85p (£28k) and no longer has any holdings
14-07-16 TU-Profit Warn. Revs marginally ahead of expectations,Gross margin reduced,EBITDA below at $3.1m.Expects GP to recover to historic levels and Business matures.Bad debt write off $4.0m
04-10-16 Results- Record Revs but impairments. Divi cut.We are confident in achieving continued growth and a significant increase in profitability in FY2017|
|"FY17 trading expected to show continued revenue growth and a significant increase in profitability".
Suspect the market will want to see hard evidence of this before it is willing to give it a higher rating.|
|Bad news: No dividends, loss due to written down of long receivable
Good news: Revenue up, no debt, operating cash flow positive
and covering 33% of the short term liabilities.|
|More buys than sells and down 20%?|
|Well I take back what I said about you never posting anything negative about a stock.
Although you did say you sold out before posting it.
Next step is to post something negative about a stock you have championed and still hold ...|
|Panmure have reduced their forecasts for 30/6/16 to 5.6c EPS, or around 4.2p EPS.
They still go for 13.6c for next year, or 10.2p EPS, which I have absolutely zero confidence in DGS achieving given the huge profit increase necessary to achieve this above both the 2015 and 2016 results and the additional costs and reduced margins this H2 noted by the company.|
|A lot of sales by PIs today but someone is buying 25,000 lots. I continue to hold as I only took a small stake due to the type of business. I wouldn't say I was extremely happy to be invested here but if management is being honest then they expect margins to improve in the next period and they are reporting record revenues.|
|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.|
|So do we think this is a scam or just a poor business? It seems that all "internet marketing" companies are extremely risky, globo and intq come to mind. Are they all cooking the books?
I'd like to know what the reason for the 4m write-off was. I thought the majority of their revenue was from so called "big" customers.|
|Sold out first thing - several trades
Surprised by TS in what I thought was a solid business
I agree with Rivaldo's analysis
|aye, but they're not going bust.|
|"a mixed update"!|
|$0.6m EBITDA in H2 vs $2.5m in H1, and as Riv says, a big writedown, so exceptional loss of $4m. ie the profits made historically have not been real.|
|"In a mixed update, DGS has reduced profit expectations for the year to June, reflecting cost pressures. Revenue growth is ahead of forecasts, the group has made progress on diversifying into new sectors, and the company expects to regain lost margin going forwards. We cut FY16E EBITDA from $4.4m to $3.1m, but leave forward estimates unchanged ($5.7m for FY17E, $6.9m for FY18E). The stock offers strong growth prospects, with no Brexit risk (all USD revenues and costs) at a low valuation (7x FY17E EPS, 11% FCF yield)... Near term though, firm evidence of margin recovery will probably be required for the stock to make progress."
Panmure note out this morning: Https://www.research-tree.com/Company/BMG2870A1036|
|Not harsh enough :o))
I sold as soon as I could this morning, grateful I could get out due to a relatively small holding and with a decent profit.
EBITDA is way below forecasts.
There was no mention at all in the interims not that long ago of lower margins, added costs etc etc.
Plus a mere $4m debtor write-down!
And net cash has deteriorated since H1 by almost $1.5m given the additional credit facility drawdowns.
I now don't trust management to give me the full story. There's too much hope in margins recovering in H1. I'll keep an eye on DGS anyway - it'll be interesting to see the new forecasts.|
|need to also look at cash position and concern with draw down headroom.|
|squeeze on margins - $4 million bad debt write offs - market doesn't like that.|
|bit harsh, no ?|
|Me too sailing john,,,,,,,last results were very good reading :-)|