||EPS - Basic
||Market Cap (m)
|Technology Hardware & Equipment
Real-Time news about Dmatek Ld (London Stock Exchange): 0 recent articles
|rivaldo: Gerd, agreed about RCG. Have you looked at CHNS? Historic P/E of 2.7 at worst, about to issue massively "ahead of expectations" results, a "green" stock too and outlook is rosy for the next few years. Gearing is 53%, but interest cover is excellent, and they're paying at least a 5% divi on a 114p share price. GNG is excellent too as another Chinese stock.
Other boring small caps with loads of cash like DTK include MCGN and KBC. And VLE trades at 50% of its net cash without taking its profitable businesses into account, though this will probably require abnormal patience.|
|oohrogerpalmer: In all the takeovers on the stockmarket i have never known a share price so far below the offer price ??
It must soon move up because there is any easy 7-8% to be made or they know something we don't ??|
|littleweed: Letter from selftrade saying this had completed subject to the egm. Odd the share price is so far off the offer. Well reading it again I think thats what the letter says.|
|glluckett2: I am a small shareholder in DTK and at 215p will show a profit on my investment of 81% and so I am in no way disappointed.
However, in March 2000 the DTK share price got up to 330+p. At this time the published t/o was £6.3m, the eps 6.2p and the profit £1.05m.
The forecast t/o for 2008 is £31m, the eps 16.77p and profit £4.43m.
Is 215p therefor a good offer? Or am I being naive ?|
|eagle eye: Well said Elmfield, solid stuff.
Historically, I've looked for companies on a prospective PER of 10, EPS growth rates of 15-20% with cash in the bank and decent cashflow.
Currently its PERs of 5, with the same EPS growth rate, cash in the bank ditto.
The main problem in this market (other than market sentiment) is whether EPS forecasts will be achieved. If they are, then the share price remains static. If they are not, then be prepared for a sell off. Its sort of heads you don't win, tails you lose.
DTK has recently had earnings upgrades of 25% and 32% respectively for this year and next. It also has over 25% of market cap in cash.
Other than selling out completely in this market, I believe DTK offer solid value.
Best Wishes to all DTK shareholders
|gerdmuller: Yes I am very interested in how that figure of £2 and the fact that the approach was being made ever got out.
I think if the discussions had been kept secret (as they usually are before a bid is made) then dtk price would have possible fallen with the rest of the market over the past month. Practically everything else has fallen in that period no matter what the fundamentals.
This could have allowed a bid of around 130p to 150p which may have been accepted by some desperate for cash..
I never thought a co like lms would pay a 90 percent or so premium in this or any market.
Maybe we should be grateful to the israeli journalist or whoever got the story out.|
|funchalman: elmfield,not much else they could say in the circumstances.
this will be decided by the large shareholders as ever.
lms have a share in inflexion.
at £44 million its obviously a good deal for lms,the price comes down to £37 million with around the £7 million pounds dmatek have in the bank.dmatek could make near £5 million full year pretax profit this year,its obviously not going to take long for lms to recoup the purchase price.
the history of dmatek really shows the stupidity of the stock markets at times.
in the dotcom boom not long after floating with profits of £0.5 million or so the shareprice went to over £3.now with possible profits of £5 million coming up and a possible offer of £2 per share,the share price is £1.27 , you have to laugh.|
|cellars: A share price of 250p does seem reasonable.
My detailed forecasts for Dec 08 and Dec 09 are, for a change, in line with the broker forecasts. Put them on a c.30% tax charge (one way or the other DTK will eventually pay tax on profits derived from the USA)and, conservatively, we have EPS of 14.25p for 08 and 16.75p for 09. Underlying market need and growth and acquisitions based on strong cash position / balance sheet / trading model, and what looks to me like a good managment team, suggest EPS will grow at in excess of 15% p.a. the following 5 years. A share price of 250p would give a PER of 14.8 for 09 and the magical PEG of 1. Wonderful value for the buyers, good for recent holders, but long term holders may not be ecstatic.
Wouldn't add anything to the 250p share price for the cash because that will be needed to execute the growth targets which justify the 250p share price.
I too am suspicious that in the circumstances there is an unusually large line of shares on offer. What could be going on? Perhaps some one is worried that interest in the shares could deflate again if there is little trading activity? Could this approach be an effort to smoke out a trade buyer? Let's watch this space.|
|gerdmuller: WE ARE IN A BEAR MARKET.
I am only glad when I see some of the comments on these bbs that management is running this co and not some of you people.
Management has created growth through exceptional cash flow creation and in so doing been able to expand though acquisition and organic growth. This has worked extremely well and yet all we seem to get is a call for dividends or the hope that the company is acquired.
Please tell me where you will get a better potential return in the next 5 years with the proceeds of a takeover.
What is the point of a growth company paying a dividend and then immediately diluting earnings by issuing more shares to make further acquisitions?
On PEG factors, you don't like or use them. Then what valuation yardstick do you employ? I never here any advice on this.
You are saying that you don't consider either past and potential earnings growth or the pe ratio of much value.
This was often the argument during the dotcom boom. Established valuation tools do not matter was the cry. A company can trade on a pe of 100 and a peg of 4 because times have changed. A peg of 4 is the new 0.5.
Well I used them then and that is why I made money while others were wiped out. We are now seeing the inverse of this argument because we are in a bear market.
There may be a lot of companies on pegs of 0.5, we are in a bear market.
PEG factors should only really be applied to companies which are true growth cos and have demonstrated eps growth of over 20 per cent per annum in the past 5 years. DTK has far exceeded that and is on a forward pe of 10. Of course estimates may not be met but that is why companies share prices are so depressed. If you want certainty then put your money in the Northern Rock.
I would like to know which other companies have the eps track record of DTK and the same potential market growth and possibly will be hit less during a downturn. I would welcome advice on similar companies on this valuation which are traded on the main London market and not AIM.
Of course the price may fall but there is no need to watch the share price on a minute by minute basis. Eventually price converges with fundamentals and this has gone from a very extreme valuation a few years ago when eps was low to a low valuation at present.|
|elmfield: David Schwartz: The headlines don't always tell the story
Published: August 29 2008 18:39 | Last updated: August 29 2008 18:39
Short-term traders often monitor breaking news stories and sudden price movements in order to anticipate what lies ahead.
But, sometimes, a better approach is to ignore headlines and big price swings. We appear to be in such a position right now.
The FTSE 100 rose 135 points the Friday before last, just ahead of the bank holiday weekend. The main news on that day was that the UK economy had shuddered to a halt after 16 years of growth. A rally of that magnitude is not the reaction one would expect from such dismal news.
Shares then turned tail and fell 136 points the following Tuesday morning when traders returned to work, completely reversing Friday's gain. Some commentators claimed the trigger was worrying developments in the US financial sector.
I found their analysis hard to swallow. Why would the UK stock market fall 2 per cent in a few hours on information that had dominated the front pages for the last 14 months? It is worth noting that the main indices clawed back virtually all of last Tuesday morning's losses by the end of the day.
For a clearer picture of what is going on, it pays to ignore individual daily price swings and look at the broader trend. Indices such as the FTSE 100 have been zigging and zagging sideways for the past five weeks.
I have no complaint. Trading ranges please short-term traders like me. They provide clear-cut guidelines about where important support and resistance areas are positioned. These are useful reference points for trading purposes.
But support and resistance lines, by themselves, do not provide me with clear-cut advice on what action to take regarding specific shares. Good judgment is also required.
Regular readers may recall that I recently purchased shares in Dmatek. The company is leader in the electronic people-monitoring technology industry. Its products are used in law enforcement and elderly care business segments in the US and Europe. I bought the shares at 104p on July 15 on the strength of an optimistic trading statement. The price has risen almost 40 per cent since. The latest leg of the rally was triggered by last Tuesday's interim results showing a fivefold increase in first-half profits.
I have little doubt that a weak prior-period earnings report enhanced last week's whopping increase. Even so, the flurry of early morning buy orders as the Footsie fell 136 points told me that some traders were caught by surprise. I now face a hard decision. Should I take my money or gamble on further price rises?
On the positive side, Dmatek has fine long-term prospects because electronic monitoring is the way of the future. And the left-hand chart below shows the share price has just penetrated a well-defined resistance line after a slew of failed attempts since mid-July.
But it's not all good news. Dmatek's recent gain would be classed as huge in any circumstance. So, the share-price performance of the past six weeks may prove as unsustainable as it has been sweet.
The second chart highlights another concern. Note that Dmatek shares rose by more than the FTSE 100 in each of the last five short-term rallies. Unfortunately, the shares typically peaked before each Footsie rally ended and fell by more than the Footsie on each retrenchment.
I worry that the broad indices will soon turn down. If Dmatek follows past form, its shares are due for a big dip as well.
For the moment, though, I sit and watch. I moved my stop-loss level up to a whisker below current levels. Any short-term dip will be my exit music.
The trouble with this stance is that I risk being whipsawed as marketmakers briefly lower prices to shake out nervous traders. There is nothing more frustrating than seeing prices rise moments after clicking the sell button. Whoever said short-term trading was easy?
Stock market historian David Schwartz is an active short-term trader. Send any comments or suggestions to [email protected]
Dmatek Ld share price data is direct from the London Stock Exchange