Dm Share Discussion Threads

[knowing] 17/3/2011 16:16

2 roll over by the looks of things. Seems you need to fill or kill for any quantity.

[knowing] 17/3/2011 00:39

Looking around these days most stocks have recovered quite well and it is difficult to find value stocks at low levels. This seems to fit the bill quite nicely and many will be monitoring for a bounce from the low. The results have shown that even in bad times the company has done well and buyers now who hold for the real turn in the economy will hopefully be well rewarded.

[knowing] 16/3/2011 17:42

Maybe SW but at least IHUK has recovered some of it's drop. DMP is still right at the bottom of it's channel. Just needs some buyers.

[still waiting] 16/3/2011 17:39

similar value at IHUK but the risk is a dodgy deal and no exit for the P.I

[knowing] 16/3/2011 16:15

davy have a read over the thread. It seems when the price was 14p the management were stating the price was undervalued and that they were looking at ways to increase shareholder value especially as AW holds 80% of the shares. They subsequently went on to pay a special dividend returning surplus cash back to shareholders.

Even when the price was 16p there were alot of PI's screaming to buy this. I expect that it fell off peoples radars as it dropped in price but very difficult to find undervalued shares such as this.

[davydoo] 16/3/2011 14:06

I've only just started looking at this, but my worry would not be an offer, but of being taken private, leaving small shareholders in an uncomfortable limbo. Apologies if this has already been discussed, havent looked back through all the old posts

[knowing] 16/3/2011 13:40

Until he makes another offer for the company.

[aa29] 16/3/2011 13:37

I'll accept the OFT situation has reduced the price so that makes it two reasons the price is low.

If you go back to guru's first posts on here, you'll see the share has been 'undervalued' for at least 5 years now. That's because AW controls over 80% of the votes and whilst he does, that chunk of undervaluation against normal criteria will stay.

[knowing] 16/3/2011 13:10

AA29 I would imagine that the majority of the reason for the drop was associated with the OFT case. At some stage, maybe now, people see value in the stock and the results seem to confirm this. With the OFT virtually finished the uncertainty is removed and the buyers will return IMO

[aa29] 16/3/2011 13:04

A quote from the previous strategic review

'As a result of the Company's shareholder structure, DM cannot be obliged to undertake any particular route which the Directors believe would not be in shareholders' best interests.'

Make of that what you will.

When I spoke to AW after this process had finished and in the light of some of the information on here at the time, I didn't get the impression that I was getting a fully straight answer to my questions. No bid level was ever disclosed.

Any MBO will see an increase in price from here but I doubt the bulk of the value in the deal will go to minority shareholders. The share price is at 5.25p for a reason - the shareholding structure.

[knowing] 16/3/2011 11:57

Anyone want the last 7.5K

[knowing] 16/3/2011 11:42

Asking full offer now for 35K

[liarspoker] 16/3/2011 10:04

Please feel free to mention any value stocks here:

TIA

[knowing] 16/3/2011 09:34

Thanks Guys for the information. A few available on the offer today but let's see how quickly they close things down with any buying.

[tanners] 16/3/2011 00:07

Knowing, following a strategic review in Sept 08 when the share price was approx. 16p an MBO was considered but as AA29 states was scuppered due to the credit crunch.

Instead the Company annpounced a special dividend paying out 5 million quid and of course as 80% shareholder Mr Williams would have rec'd 4 million of it, so depending upon his other commitments he could well have the firepoweer now on his own.

However, if it was going to happen I would have thought he would have moved before the results were out which do somewhat highlight the potential undervaluation of the Company, though of course that's not to say he won't announce it tomorrow!

Despite all this I'm still of the view that it represents an interesting punt at the current price......

[knowing] 15/3/2011 21:20

Thanks AA29. Do you remember what price was discussed at that time? I would imagine that any bid would be at a good premium to todays share price based solely upon the results just published.

[aa29] 15/3/2011 19:27

Knowing - AW controls c81% of votes. There was an unsuccessful attempt at an MBO a couple of years ago (scuppered by the credit crunch) but I wouldn't be surprised to see another attempt soon. I'd doubt that the price will be generous.

[knowing] 15/3/2011 16:03

tanners do you think there is a possibility that he will make an offer for the whole of the company?

[tanners] 15/3/2011 16:02

Knowing - the liquidity is the downside, as the Chairman Adrian Williams holds 71.5% and I think there's only about 7% of the share capital in free float.

I have taken an small interim position here, but am looking for clarification of a few other issues before any more commitment, one of them the spectre of further sharebuy backs as these will only exacerbate the illiquidty.

[knowing] 15/3/2011 15:53

15K max size now

[knowing] 15/3/2011 15:01

Buys on PLUS now

[knowing] 15/3/2011 14:42

StockMarketWire.com

Full-year after-tax profits at direct marketing group DM rose 10.3% to £3.84m with turnover up 7.7% at £27.56m.

Group earnings before tax, interest, depreciation and amortisation in the year to the end of December rose 0.9% to £5.5m.

The group generated £5.6m of operating cash flow and at the year-end had a net cash surplus of £0.98m (2009: net debt £4.43m).

Chairman Adrian Williams said: "2010 has been another challenging year for the group and we are quietly satisfied with the results.

"Progress has, and continues to be made across all business activities and the group continues to be well placed to benefit when market conditions finally start to improve."

[knowing] 15/3/2011 12:01

Hi Tanners,

Yes seems as though the results were overlooked due to the Japan problems yesterday. Max buy first thing was 100K now down to 35K. Do you happen to know if the stock is closely held?

[tanners] 15/3/2011 10:36

Definitely agree there Knowing......the OFT situation may not be fully resolved but on a P/E under 3 and no debt that gives a very large margin of safety imo.

[knowing] 15/3/2011 09:37

Guru this one looks very overlooked. Very very good set of results.