Digital Globe Share Discussion Threads

[speedsgh] 25/9/2015 12:24

Ditto. Less of the 'small' wrt to the divi please. Current yield + forecast rate of growth are both impressive imo.

[scottishfield] 25/9/2015 12:20

Agreed riv; been buying a few here recently.

[rivaldo] 25/9/2015 12:11

I'd call it a large divi :o)) See my post 356 above.

[tomboyb] 25/9/2015 11:39

This has been climbing up nicely - small divi as well

[cheshire man] 25/9/2015 10:54

Not that long to wait for news and the almost 5% divi to keep us warm :-)

"In terms of further news flow, holders or watchers of the shares shouldn’t have long to wait, Cox confirming that there will be an Interim trading update in mid November, coinciding with the AGM."

[rivaldo] 25/9/2015 09:21

Thanks for your excellent write-up on DGS hastings, just caught up with it:



It'll be interesting to see what price DGS consider to be the "right" price to begin their $500k share buyback programme.

Hopefully DGS shareholders are in line for a double whammy of rapidly rising profits and a huge dividend yield to boot (the forecast 4.9c divi is over 5%).

[rivaldo] 23/9/2015 13:30

New recent highs now - impressive share price performance given the state of the markets.

[yump] 22/9/2015 12:02

Well, sort of. Although after a lot of years I don't take much notice of interview content - its nearly always positive whatever the eventual results of whatever company is being talked about.

I get the feeling that they think its OK to just report the figures and general information about expansion, but you can hear positivity from every single company that is trying to expand.

There's a contrast here between DGS and those other companies that fill their reports with sales pipeline opportunity figures. Some of them go on and on about those and never deliver. DGS are the opposite and don't mention the size of opportunities at all.

I'm sure investors would like some idea of the potential revenue opportunities that DGS think are available in the EU. Plus perhaps the revenue opportunity from signing up one major utility.

We could have a guess I suppose, based on what appears to be the revenue from their US cable operators, but could easily be wildly out.

I'd expect the revenue for a UK utility to be significantly less than that for any of DGS existing cable operators. If it was an EU operator - no idea really.

But to jump revenues and grow significantly, I was hoping for a group of UK/EU clients by now - even if in discussion, rather than signed up. It looks like there are several discussions in progress, but again the size is the key question because that will dictate where to look for the main revenue increases.

No harm in them saying. Just one sentence would do !

[saucepan] 21/9/2015 17:09

Interesting perspectives, yump - and thanks for your excellent write-up, hastings.

Yump: I wonder if you feel any of your reservations were mitigated by what Mr Cox had to say in hastings' reported piece?

[yump] 21/9/2015 14:36

Half thought of topping up recently but imo they have a long way to go and are not on my ltbh list for the time being. Whether its a recovery play depends a lot on the next half.

Its quite a wordy statement but as far as I'm concerned there are important bits missing. Those are the bits that I was hoping to see since the finals in 2013.

Unfortunately since the float there has actually been precious little to feed on, which in terms of keeping shareholders informed - I don't like.

One of the key reasons I liked them in the first place was the possibility of expansion into new geographical markets, as I know they are fragmented in the handling of pay-per-click lead generation. But it occupies a mere 4 lines in the statement:

"2. Extension into new Geographical Markets. The Company has continued to explore geographic expansion that is both value and profit accretive. In June 2015, the Company signed an agreement with a UK utilities operator and expects to launch this in the second quarter of fiscal 2016. The Company will continue to explore acquiring entities based in Europe that the Company believes will be accretive to shareholder value. "

Over 2 years+ that is not the sum total of what I wanted to hear.

Secondly, the expansion into new verticals:

We are told the proportion of revenue from the existing big clients has dropped, but there is no detail at all about the verticals that are being expanded into.

OK, they have had their problems, but given the size of the revenue and profit miss, I would expect a lot more detail on the outlook initiatives.

Given their statements about dealers and indirect selling, it looks to me that the original strategy has had to be tweaked to say the least and the new geographies in particular are proving difficult to crack.

If that is the case, I would expect to see more acquisitions of agencies and similar, which would equate to buying revenue, rather than growing organically with direct selling.

Some detail that would be critical would be the expected margins when selling through 'dealers' (affiliates ?). Judging purely on previous reporting, I don't think we'll see that information.

I'm probably a bit biased by disappointment, but in the end, they haven't delivered on their initial plan and more importantly that is only partly due to the merger stuff going on.

They scaled up for expansion, but that expansion was for new areas. The fact that existing client revenue took a dive affects the result, but it does not mean the question mark over expansion disappears.

At interims the UK utility will be in the picture. I would expect some revenues to be statemented, even if roughly and even if the utility is unnamed.

[hastings] 21/9/2015 14:06

Some thoughts may be of interest.

[speedsgh] 21/9/2015 12:29

From today's results...

"Board approves share buyback of up to $500,000 subject to a floor of 50 pence and maximum price of 105% of the five day trailing average in accordance with the shareholder approval granted at the November 2014 Annual General Meeting."

[cheshire man] 21/9/2015 12:19

Pleased with this news and happy to hold with the divi in mind :-)

[oregano] 21/9/2015 09:54

As per the H1 shenanigans, not a high quality business but on 9x with upgrades likely it could easily be 50% higher.

[rivaldo] 21/9/2015 09:41

Terrific H2 results. The 4,1c dividend is way ahead of expectations, and Singer say this morning:

"Adjusted EBITDA came in at $3.0m which is better than our expectations of
$2.6m."

The confidence for this year is evident from the narrative. Just a question for investors of whether they top up now or wait for further confirmation from H1'16 numbers.

[mg1982] 21/9/2015 08:32

I had this on my watchlist and was waiting for results to be released. Can someone clarify to me what I am missing:

Prior to today I had N+1 Singer broker forecast FY2015 as revenue of $41.6m, Net Profit at $1.58m EPS $0.052 (I think PBT was forecast at £1.01m sterling not sure on this last one though)

To me it seems like a forecast miss with revenue reported today at $40.2, but more worryingly PBT of $662k, Net profit of $257.5k, EPS of 0.009.

What have I missed out? Any comments appreciated.

[hastings] 21/9/2015 08:00

Agreed Saucepan.5% yld and 2016 PER of 8 without potential upgrade.Singer pretty bullish with first comment and I am speaking with Jeff Cox this am so will add some further thought.

[saucepan] 21/9/2015 07:50

I am very pleased with those results :-)

[deanowls] 21/9/2015 07:43

Good second half result, should see a bounce in the sharprice going forward.

[yump] 21/8/2015 14:48

Be interesting to see what he says.

It would be surprising if the merger issues hadn't caused disruption in the efforts to get new large clients.

I can't imagine being in a company that looked to have a secure base, well regarded clients, floating and expanding and to then have the carpet tugged suddenly !

Pretty scary moments internally I guess.

[hastings] 21/8/2015 14:11

Hi Yump, appreciate your thoughts and you obviously seem well versed across the area.For what it us worth, although no firm date set for the results as yet, I have had it confirmed that I will be speaking with Jeff Cox again on the day. so hopefully there will be plenty more comment to add.

[yump] 21/8/2015 13:03

Some time horizons in my head based on the market:

Float Feb 2013

Lets assume some preparatory work in contacting overseas possible clients.
A year to develop some serious meetings and demos.
So that's Feb 2014

Some client testing with a view to letting DGS loose on an annual PPC budget.
Say end 2014

Wait for clients annual contract renewal dates for paid search, assuming some will take up the offer.
ie. anytime in 2015

Add in a bit of disruption to things in general because of the main client hiccups.

My 'deadline' is end 2015 for a named biggy or unnamed biggy with a known (ie stated amount) big annual value to DGS.

[speedsgh] 20/8/2015 14:41

Have also joined you illustrious crew today. Managed to get well within the quoted spread :o)