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Real-Time news about DQ Entertain. (London Stock Exchange): 0 recent articles
|tiltonboy: Dire results from DQE. Share price down to 23.|
|canna1: Hey Tilton. Just read this.
DQ Entertainment (International) Ltd has informed BSE that Mr. Sachin Guha has resigned from the position of the Company Secretary and Compliance Officer of the Company. He has been relieved from the services of the Company from the close of business hours of October 31, 2016.
Ah well no reporting on PLC as he suggested to you. What a shambles, why oh why do these people get away with it. Rashida who is the shareholder point of contact for the India quoted shares still wont answer any emails about anything!
Has anyone heard anything about the Bondholders and the default event earlier this year. Tilton you seem to know a lot more than most about this company, have you heard any snippets about said default event and if the Bondholders have taken any action. It is so frustrating that they get away with not giving an update as to what has happened. I noticed RNS reach have even taken down the notice about Tapaas resigning from the PLC, does that mean he has not resigned! Has anyone received a share certificate or any news from their Broker if held in a nominee account. I cant be bothered contacting A J Bell as have written off the £3000 I had invested, not heard a peep from them. Still would like some answers though!!!
India share price up over 4% as I write LOL|
|2pablo: simonp - it is very interesting comparing our price here to India. I use Bloomberg and google quickly goes there on typing DQE India share price. Here it is easy to compare the 2 prices over various timeframes up to 5 years.
The India price always seems to have held up better and is now, indeed, picking up stronger than on Aim. The theoretical arbitrage has been there for years but is only hypothetical and I don't know why there isn't much symmetry or equalising but there never seems to be.
All that said, it looks like something is definitely 'up' at DQE at the moment and the EGM will surely have to be called soon. The motives of Corp. Computer Services and their probable 'concert party' with others giving them over 51% is still under wraps but a takeover @ 9p looks a possibility or higher.
Don't think IMO there's much downside.|
|bbluesky: Well, interesting times. IMV the Indian share price has broken out to the positive decisively. Then I see that in an Indian RNS Tapaas did not attend the AGM 30 Sept owing to a personal emergency...|
|petersmith3: PPG - one of the safest aim stocks with 10-bag potential!
Plutus has already been awarded management contracts for 5 X 20MW generating sites. Rockpool Investments has managed to raise £17.8 million in EIS funding.
Each 20MW site could potentially generate on average Â£340,000 net annual profit for Plutus, even if only running for 120 hours per annum.
So 10 sites (the stated target within 3 years)would be likely to produce £3.2 million in net profit to Plutus, equivalent to 0.43 pence per share.
If all 10 are contracted under the Capacity Market, this would add another £1.5 million in net profit (equivalent to a further 0.20 pence per share), making a total of 0.63 pence net profit per share.
This is all well and good, but it is already on the cards I understand that this 3 year target of 10 sites will be smashed in the first year.
I believe we could be more than double that number of sites by August 2016, in which case we are talking of between 1.5 pence and 2 pence net profit per share.
So the price target for the share should be a minimum of 20 pence by August 2016. If this comes about (20 sites plus) the sentiment and probably further institutional investment stakes will ensure that it goes north of 25 pence a share.
So this would mean a 2,500 % increase on the current share price.|
|smithie6: I agree...a -ve indicator.
was your post about Blur receivables or which co. ?
(lots of opinions about receivables on fulltimeinvestors.com
on blog pages for Globo and I think for DQE as well (that might be on 2014 picks page)
imo DQE should report how much receivables from licenses...and over how many years.....and how much from other things...
'if' they include say 5 or 10 yrs license income from co. X
then it can change the numbers too much...when you are trying to calculate "annual" numbers
falling knife...when is it worth trying to catch it ?!
...people thought 40p was the bottom....
one -ve item for DQE that I dont think people have posted here....is the 18% fall in labour costs...
and I think that was the same the year before....
if the co. is getting smaller each year...then that is not a good thing imo...
if they were selling stuff like hot cakes....they would be making more cakes !...and staff costs would be going up....not down. imho.
The MD has no background in animation industry....that is one of the -ve factors when considering if the co. might need to yet again raise more finance.
I thought most or a lot of their production was funded by clients....so I struggle to understand very well why they seem to keep needing to raise money...
and surely if you dont have much money (as per now , 300k only) then surely you then just limit yourself to doing work funded by clients, on which you make a profit, so why do they keep eating cash ?
(and ages ago they could have shelved any cash consuming stuff like JB film)
compare with NBI..hire equipment and make electrical load banks..make a profit..
put that profit into buying more equipt. to rent out....make profit, buy more rental equipt. to rent out....make more profit....and so on...
share price ...over the years...goes up...
sadly does not seem to be the case at DQE.....keeps consuming money,,,creates assets that appear to perhaps have little worth since licensees like SMC do NOT want to license them !! and can not achieve sales...
and raising more money ...and over the years the share price goes down...
who knows what will happen...
maybe the MD will go as well...and maybe the share price goes up if a respected new MD arrives with experience in the sector.
or Disney invest to take 29% at 15p/share ....or raises new money at 7p/share !|
|smithie6: In reply.
(while noting I do hold a few)
March 2011 share price = 110p
March 2014 share price = 14p
a) Share price has almost divided by 10 over 3 years.
b) Rescue cash raising done not so long ago at 20p.
Repeat, a rescue cash raising.
c) The share price has recently gone from 14p to 28p and then back to 14p over a number of weeks. The mkt. is not impressed.
"TBH quality is not an issue. Look at the partners and the awards"
The market seems to think that the awards are ....'pants'. !
...partners.....partners use DQE 'cause they are cheap per hour imo
not 'cause they are better than UK or USA animation houses
and I recall that the MD had his wife and daughter on the pay roll....
his wife in a well paid role I think I recall...
I think that has now been rectified.
The bod is undoubtably weak. I'm hoping that will be improved.
The past experience of the MD in this sector is....NIL from what I can see of his CV.
Letting him loose on JB film.....massive risk imo.
and personally I dont think the DQE JB stories are any good nor the public popularity of the DQE Mowgli character.
Personally, I hope that either DQE do NOT do it, or get others to fund it completely.
MD's experience as producer of an animation film, nil.
(the DQE Mowgli character has match-stick arms and an over sized head
and a dopey face and dopey character.
imho I can not see children wanting to copy or imitate that character...or buy school satchels with his image on it
(but some small changes can fix that, fixing the story lines is harder)
Peter Pan stories are better imo....perhaps different team or writers...
2 x 1M$ not expected to be paid. 1 is from licensee that refuses to pay.
The MDs skill on licensing......these 2 cases would question his skill in that area.
still holding but not very impressed at present.|
I guess that one observation might be that the volatility in DQE share price...and Globo and MOS....
- current accounting rules do not provide sufficient transparency of what is actually going on financially inside a company
(at Globo they move costs into 'tangible assets'...hence bumping up the profit...and no one knows if the receivables is true or false)
- insufficient updates are provided to investors from companies, imo
SOLUTION (for AIM co. accounting, not just DQE)
a) where there is a receivables amount greater than X % of the cap. value or Y % of the turnover then require accounts to detail what the receivables is for, when each block > 10% is expected to be paid and the % per different client of over 10% (so that can see if 1 client is 90% of receivables)
b) provide a monthly update to the market, even if just to say 'no change from last main trading update'
(since it is too often that companies announce a big profit warning instead of smaller ones in advance...when the dirs. knew months before)
c) STRICT rules on definition of "sales"
imo so that a sale is only where an end customer has accepted the product and signed that they will pay for it, in less than 60 days.
and hence 'sales' to re-sellers would not count as a sale (if you want to frig the numbers that is one way to do it, and might be the case at Globo, next accounts will reveal the reality)
With DQE....its products can be seen on Youtube ....and on TV...and the different series it has made are known....
so, it is valid imo to assume that the cash raised has been used to create real intangible assets...there is no question on that imo
how much income will arrive via licensing etc from those tang. assets...we have to wait to see imo...which is fair enough imo....takes time..
(other 'content' company shares have done well, incl. Disney, ETO etc...so, my fingers are still crossed for my small holding in DQE...although recent fall from 28p is a bit worrying)|
|here and there: Please bare with me on this long post. Quotes from
Allenby Capital Broker's note on DQ Entertainment July 2013
apology for the lack of link...perhaps someone else could post a link to the Allenby note.
Multiple revenue channels
"Revenues generated from minority co-productions and majority productions of owned IP content and global distribution. These two revenue channels offer substantial and lucrative longer term licence and royalty fee income through the licensing and merchandising of the Group's growing IP content."
Owned IP is the key to profit growth and recurring revenues for DQE's future. Check out the graph in the Annual report on about page3-5 where they highlight the power of IP in creative industries. I believe what they have done with the Jungle Book franchise goes along way to corroborate the company's growth plans
Majority IP owned services
"More recently the Company has built its own IP portfolio through iconic brands that are now mostly out of global copyright for the Jungle Book, Peter Pan, the No 5 and IT, Robin Hood and Lassie. All of these properties are being co-produced with reputable global broadcasters and producers such as ZDF TV-ZDF Enterprises Germany, TF1-France, M6 France, RAI-TV and De A TV Italy, ATV Turkey, Global TV Indonesia, Method Animation France etc. "
From my meetings with management last year I was told JB 2 was to be delivered in Jan. 2014, Lassie in March 2014, Robin Hood in April 2014 and 5 & IT in 2015. That is a lot of owned IP hitting the market in a short space of time. We should see deals being announced re. these titles. It should be noted that Peter Pan, which has been described to me as being more successful than Jungle Book has yet to be sold to a distributer in the USA.....this must surely be a prize deal. Disney took JB
On the big picture the Global Animation Industry
"Animations are recognised as having significantly more longevity than non-animated films and on-line and mobile video consumption of content is expected to grow significantly over future years."
The animation market has grown at a consistent rate from 2008 from $158 Billion to $280 Billion in 2013 ..... steady growth all the way through the GFC. Re-assuring in the face of continued uncertainty in global markets
Indian Animation market
"The animation industry in India is estimated to have grown from US$177 Million in 2005 to $961 Million in 2012 and has shown remarkable resilience in the face of the economic down turn"
I would imagine Indian competitiveness for outsourcing animation has increased dramatically in the last year since the Indian Rupees' value has collapsed against the US $.
"Over the past 10 years the industry has seen the entry of many global majors who have tapped into India's talent pool for off-shore delivery of services. A pertinent example of this trend to exploit the high skill base of the Indian industry can be illustrated by the acquisition of Bangalore based animation studio Paprikaas, by US giant Technicolor in 2007 and the subsequent strategic alliance in 2008 with DreamWorks Animation (Shrek, Madagascar etc) to set up a dedicated studio at Paprikaas with the hiring of an additional 300+ staff taking the total headcount to over 900."
Although theses buy-outs were pre-GFC, it indicates what could happen to DQE in terms of a buy-out/tie-up with a major in the future. Considering DQE has the largest highly trained workforce in Indian animation, they must be of interest to the big boys in the first world. I don't believe DQE are looking for a buyout for several years until their own IP productions have matured in the market place and the subsequent incomes have registered onto the bottom line and lifted the market cap.
"We believe that the Jungle Book franchise now accounts for a significant proportion of DQE's revenues and the Season 2 in production will continue to be a lucrative franchise for the Group, irrespective of the success of the prospective feature film and will continue to attract revenues from the sale of broadcasting rights and also from a myriad of licensing and merchandising sales."
JB2 was due to be finished in January 2014; even allowing for a little slippage, it should be done and dusted around now.
"We estimate that in the current year to March 2014, DQE will benefit from the royalty income associated with the SMC-originated Burger King deal signed in September 2012, and Walmart deal signed in March 2013.
"In addition, in April 2013, DQE announced a number of other small licensing and distribution deals, which it estimated would result in combined revenues of around INR 108 m over the next 3 years. Together, these and other licensing deals should combine to deliver RECORD REVENUES from the licensing and distribution division in the current year."
Promising predictions if record revenues are achieved
Page 29 Order book
"The order book at 31st March 2013 stood at INR 6589m, somewhat down on the INR 8064m order book a year earlier. However, we note that the 2012 order book included the prospect of 2 co-production feature films that have since become more doubtful and hence were excluded from the 2013 order book (we understand that funding has recently been secured from one, suggesting that there is a good chance of this being resurrected to substantially add to the order book value)."
Now this note came out in July 2013.
In a recent interview re. Method Animation's re-organisation( see the link,) Tapaas talked about, " finalising seven TV series. One of them live action animation hybrid series and two feature films including the Jungle Book feature film, now goes into co-production with them ( Method) and their sister company in Canada to take advantage of the Canadian and French subsidy scheme."
Answering a subsequent question, Tapaas talked about the order book and financing. There was some confusion over whether he said millions or billions and what currency. I also had a query over the financing method. I got these queries answered by DQE and this is what he said/meant,
"..and we know the tremendous orders in hand, little close to a 100 million (dollars) plus now substantial rise in order book will happen in next couple of months time. To fund that and to fuel the growth from the mere stable growth for last couple of years ,and we are on target nowalso, but we want to really breakout and move forward. For that capital infusion will be required so we are working on that."
Funding will not be via equity raise but via project debt financing through banks as has been done in the past.
So it seems like at least one of those two feature films that were taken off of the order book is going back on as a firm order and Jungle Book Feature film has subsidised co-producers/production studios lined up and they are not too far away from green lighting production.
"In consideration of the above, and taking due cognisance of its current modest size (in comparison to its rated peers), we consider initial fair value for DQE to be £0.50p offering a significant uplift from the current depressed share price. At this price, the forward PER would be 7.4 x falling time 5.8 x for 2014/15.
"We would anticipate the shares moving high on production and licensing updates and significantly so on confirmation of the successful funding of the Jungle Book feature film."
So I think we are due a very interesting 6 months. Results should show record revenues from merchandising and distribution; We should see details of new film productions, the completed delivery of JB2, Lassie and Robin Hood. Multiple deals re. TV and merchandising of all these owned IP productions; The finalisation of the distributers and financers of the JB feature. Some news on Peter Pan 2 and PP1 being sold in the USA|
|glasshalfull: Why is it utter madness wantonhearts?
I'm keeping a watching brief as I've a number of investment colleagues with holdings in DQE & as you may be aware I carried out considerable research on the company a few years ago.
As you will see from the first link, the share price of the DQE India was 140 rupees per share at the time...DQE own 75%...& DQE share price at the time was 119p.
Take a look at the historic forecasts & you will see they haven't been met. As I posted above (post 1555) I'm concerned over the level of trade receivables and rate they are burning through cash. You will also note my comment on management.
I will agree that the company offers great potential, especially at the current lowly price...but IMHO there are clearly concerns that they may well require a fundraising at at the current price this may lead to considerable dilution.
Not knocking the company, just felt your comment was extremely biased.
That said, hope you make a packet here.
DQ Entertain. share price data is direct from the London Stock Exchange