Drs Data&Rsrch Share Discussion Threads

[cockneyrebel] 13/11/2003 11:57

Think this could be a good buy actually.

This one has 4 years solid earnings growth of well over 100%. Over the last 3 years eps growth has been 85% compound. 15% compound doubles your money in 5 years.

In H1 they seem to have set aside 106K for a legal battle that they now won't have to pay for. If they hadn't done this, H1 eps would have been well over 2p, probably showing 30% eps growth. That's still strong growth.

30% eps growth in H2 would be 2.86p + about .25p for the money that no longer has to be set aside so 3p+. Added to the 1.57p in H1 = 4.57p for this year by my estimates, if they grow at the current rate.

20% eps growth next year would mean 5.5p eps for the year, easily possible for this to be severly beaten. A forward PE of 12.7 would be cheap for such strong reliable earnings growth - most stuff with this record are trading on PE's in the high teens or early 20's. A PE of 17 and 5.5p eps next year = 93p with scope to beat.

CR

[drewz] 13/11/2003 10:41

Watching and researching, but as yet unconvinced as to intrinsic long-term ten bagger status.

[stockport] 13/11/2003 10:08

Thanks lightbulb

[lightbulb] 13/11/2003 09:38

Extract from Zak-Mir's UK-Analyst tip

But There will be winners...DRS

DRS is a company involved in automatic counting of ballots (like that for London's Mayor) and automatic marking of exam papers. Its chart shows a clear curved saucer recovery / exponential type progression. The simple interpretation is of a stock that is now accelerating away from its 50 day moving average towards multiyear highs.



The main question is how high can it go? There are two main upside scenarios. The steeper ascending price channel has its support line running through 60p and the upper resistance line pointing towards 150p. This is the target as long as we do not see an end of week close below the 50 day moving average. A more conservative target is obtained by projecting July 2002's price channel up towards the 90p area. However, though I usually go for more modest targets, above the 50 day line 150p is the figure that I am going for. At 66.5p that makes the stock a clear technical "buy."

[stockport] 13/11/2003 09:00

Thanks Lafiamma. I hope Zak Mir's prediction is right!

[lafiamma] 13/11/2003 08:48

UK-Analyst is sent out by email everyday, unfortunately I have deleted mine, otherwise I would paste it. I stupidly sold DRS at 50p, only to see it keep going up! I have been waiting for a dip to buy back in, but with all the good patent/legal news & now the tip from UK-Analyst, I think 67p will become a solid support level.

I'm now on board for the ride & yes, £1.50 was the SHORT TERM price targeted by Zak-Mir! (Can't say I've ever followed his tips before though!)

[stockport] 13/11/2003 08:36

Poco, can you post a link? That would indeed be a good result for DRS whom have been undervalued on a fundamental basis for a while now atleast IMHO.:-)

[poco a poco] 12/11/2003 22:48

UK-Analyst.com (Chartist - Zak Mir) has given this a target of £1.50.
Should liven things up a bit.

[stockport] 10/11/2003 17:27

Pippin, I do hope you are right, we definately have a very strong chart position and with the litigation settled without court costs DRS looks in a very strong position.

[pippin] 10/11/2003 16:04

Agreed, stockport. On such a move I would also be looking to add. But I have quite a few now so if it doesn't come back, I'm OK. Actually I rather hope we're seeing an accelerated uptrend!

[stockport] 10/11/2003 10:51

I agree that this shows a strong uptrend but we have had a good steady rise so a drop back to the bottom of the trend line cant be ruled out. If it does then I will top up.

[pippin] 10/11/2003 08:53

The chart doesn't suggest that a fall-back is likely!

[stockport] 08/11/2003 10:43

Pippin

I am with you on this one as well. Topped up last week and may add more on any price fall back.

[pippin] 07/11/2003 17:27

Ah, not alone at all! Any idea why they haven't posted my trade?

Did you buy a few today too?

[mdchand] 07/11/2003 16:10

Pippin - your not the only one who lives this stock :-)

[pippin] 07/11/2003 15:24

Actually it's interesting how little interest there is in this stock. Excellent fundamentals, a wonderful, wonderful break-out chart and no comment here for over a fortnight. Just as well, I guess, or I wouldn't have been able to buy at this price.

It seems very tightly held and no wonder!

[pippin] 07/11/2003 15:17

Bah! Tried to top up with another 24k. But they wouldn't play. My broker wheedled 13k out of one of the MMs, but that was it.

They are bid in 50k though so the marketmakers are very short of stock. I must say I'm tempted to put the squeeze on and buy more tomorrow! The price effect would be interesting!

[jainsworth] 20/10/2003 13:28

Any speculation as to true value??

[kjoco] 20/10/2003 12:46

REG-DRS Data & Research (DRS.L) Patent Litigation Settled.

20 October 2003

DRS AND NCS SETTLE PATENT LITIGATION

DRS Data & Research Services plc and NCS Pearson Inc have today announced that they have settled the outstanding patent litigation between them.

DRS commenced this action in January 2003 seeking to revoke five patents owned by NCS covering some aspects of using technology in examination marking. The trial was due to take place in the High Court, starting on 17 November 2003.

In the settlement that has been reached between the two companies, DRS has agreed to withdraw the revocation action in respect of the patents and NCS has agreed to grant a licence to DRS to use the patents and to sell its e-marking products.

Representatives of both DRS and NCS say that they are pleased with the settlement which, in the circumstances, benefits both parties.

The provision in the DRS first half year's results for the cost of the trial can now be released into the second half year's results.

[humdinger] 20/10/2003 11:44

Up and away from here now the litigation issue is settled.

[pippin] 15/10/2003 13:39

Must be close to another mark-up - just one small seller today and a few bits of buying.

[humdinger] 13/10/2003 16:38

pip - looks like you were right - still plenty to go on this one and their contracts are so high profile that there's always a chance of a predator.

[pippin] 13/10/2003 15:35

I don't know, humdinger, there really is no stock around at all. If one of the two market makers just doesn't want to offer any shares above the 10k that they have to deal in - won't even make a pricefor more, there is the potential for a spike. If they can't find a hefty seller (and I wouldn't mind betting that the sales traders have been ringing round today) even a small amount of buying will lead to sharp movements. Anyone looking to buy in size will be told it can't be done. And if the MM's are actually short, it could get really interesting.

I just wish I'd finished researching the stock on Friday, before Citywire got hold of it.

Does anyone know if this is the Peter Webb of Eaglet who has been buying in? Now he really is a man to follow! An amazing track record in small stocks over the years.

[humdinger] 13/10/2003 14:15

Pippin - well done, excellent timing - got a feeling there is a bigger buy in the wings.