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Real-Time news about DM (London Stock Exchange): 0 recent articles
|guru11: Agree next set of figures and report will be interesting after such a share price drop. They did forecast significantly lower profits.
They are into scratch cards, but why can't they change their model and be more honest up front with punters, say have cash prizes of 72% of income and say up to £1,000. Dodgy practices are no good for profits, shareholders or customers as highlighted by the OFT.
I thought that was it PDV at one time revenue was at record levels. What has gone wrong at the Company? Surely not all the profit was made on 090 numbers charging £9 a telephone call?
Lets hope the OFT legal fees are accrued for into the profit forecast, and that when DMP has to pay them they are still trading.|
|guru11: The question is what are the legal bills that DMP are totalling up ?
We have already heard that profits will be significantly lower this year presumably that is taking into account the legal bills payable.
The other question is 'What are the prospects for the future'
DMP should be upfront with prizes - and have a scale of prizes say from £10 to £1,000, from scratchcards and say it pays out like slot machines 72% of all takings paid in (excluding premium rate number income) - however it needs to appear more on the straight and narrow than it has been in the past.
Asking for postage costs for a winning prize not much more than the postage costs as I understand it, is dodgy and giving DMP a bad name. They are not going to win a case like that in the European Court appeal.
So we need some good positive honest news!!
But when is the tide going to turn on news and the share price??|
|aa29: 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.|
It does not really make sense as the fundamentals have always appeared to be good. The prospective pe ratio is now 2.1. Is that now not silly?
The share price suggests that they will definately not maintain the profit track and bad news is on the way, but the question is 'Is bad news on the way' and 'Are eps now about to fall' cause if not thenthe share price is very cheap. The pe ratio has always been low, but now it is low, low.
I think that sometimes a share price can be like a snowball, some punters sell the price goes lower, which attracts more sellers to sell, regardless of the fundamentals and anything else.
The fall in the share price suggests that DMP is going under, but is it after they repaid £4m worth of debt last year, and this years eps could be 2.64p.
Time will tell. The next set of results will be very interesting.
It keeps falling - now 5.25 / 5.75 and for larger sells now 4.75p -
What can one expect next - a share price rise or some very bad news.|
|guru11: Price now 5.5 / 5/9 prospective pe ratio 2.2.
Where do we see the share price after the next set of results ?
Do we look at the gloom and doom of the current share price,
or the past record of results ?
Are these very very cheap, or are there problems for the Company.|
|guru11: Another month of no change in the share price and no further news. This could continue until next set of result and the OFT outcome. However if DMP is paying back debt at the rate it was then things are looking towards a debt free company.
Correct me if I am wrong but not all their business depends on scratch cards and 090 number income. The problem with DMP since I have been a shareholder it has all been anticipation of a higher share price which has not happened. Was not PDV sales at record levels in one report?
2011 should be an interesting year, as DMP share price must now be at rock bottom, as well as the pe ratio which is really now quite silly. Touch wood - surely there must be too much bad news built into the share price now, the only fly in the appointment is how much DMP will be spending on legal fees on the OFT problem.|
|guru11: The only thing is that DMP share price could tread water and may even once again drift, dispite the low rating. However it will be interesting to see what the Investors Chronicle write about DMP as they do favour the stock. My guess is that they will have it down as a buy, but even this may not move the stock.
Normally with consistantly low rated stocks they do achieve true value given time. DMP has good management and has achieved consistantly good results so I am sure that given time we will see this stock re-rated even if it does take 2 or 3 years. I am in for the long term.|
|guru11: Jeff H - thanks for that info. - The question is why is the guy selling - fed up of waiting for the share price ise, or cause of the OFT situation.
They did say that the second half results would be better than the first, so the pe ratio should be less than 5, even nearer to 4.
However the more important factor that will affect the share price on results is the effect of the OFT investigation / outcome on the 090 numbers affecting DM's scratch cards, and a statement hopefuly from the company which will be forthcoming on, the affect of profits. But coming to a conclusion by the OFT and courts can take months and could surpress the share price until this is sorted out, or the company says it will not have too much effect on profits.
If the pe ratio continues at just over 4 eventually the share price must rise, it is a shame that the rise in share price is taking so, so long. We need some positive news but then the next set of news could be in April to know where we stand with DM.
I believe though DM is still worth holding cause of the low pe ratio, and past Management record.|
|guru11: Believe results could be out in around 4 weeks time. I look foreward to see what the final pe ratio is for the year, and more so an update for the coming year, as the new acquisition should now be bedding in now. Management has always produced the goods in the past so there is hope again. However there is more shares in issue now which will dampen the eps figure and pe ratio. The question is how much profit will the new acquisition produce in the coming year, and what do they say the prospective eps and pe ratio will be for 2009?
Have invested in a small way in RLX of late, but am sticking and hoping mainly for DMP share price to really improve this year. I could well do with the potential rise in DMP as well, so lets hope that the update is very good. A bid now may not realise full value for DMP.
Who else is there left to bid for DMP, especially as with the banks not lending funds and it would have to be a cash bid? Think a bid is now totally off.
Question - I know it could be naughty after the recent payout - could we be expecting a final dividend payment?|
|guru11: Good to see DMP share price recovering today, although only on the back of small deals. Has there been a strong recommendation somewhere as there has been a number of buy trades today?|
Dm share price data is direct from the London Stock Exchange