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DGS Digital Globe

59.00
0.00 (0.00%)
19 Apr 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Digital Globe LSE:DGS London Ordinary Share BMG2870A1036 COM SHS USD0.001 (DI)
  Price Change % Change Share Price Shares Traded Last Trade
  0.00 0.00% 59.00 0.00 01:00:00
Bid Price Offer Price High Price Low Price Open Price
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
  -
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 59.00 GBX

Digital Globe (DGS) Latest News

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Digital Globe (DGS) Discussions and Chat

Digital Globe Forums and Chat

Date Time Title Posts
21/10/201610:04Digital Global Services – Earning a % of Online Ad. Spend561

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Digital Globe (DGS) Top Chat Posts

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Posted at 21/10/2016 07:36 by yump
TRGI to buy DGS back.

No prizes for guessing what may have gone on here.

Or was it just the 'normal' passing of risk of expansion to the stock market instead of TRGI ? It depends whether you think DGS actually had a properly researched expansion plan I guess, as they have made very few inroads into any new markets.

Or was the clue in the total lack of detail year after year ?

"DGS, which was originally a wholly-owned subsidiary of TRGI, listed on AIM in February 2013 at a listing price of 159 pence per DGS Share. The purpose of the listing was to provide access to capital and raise the profile of DGS and accelerate the expansion of DGS's business to new geographical markets and industry verticals."
Posted at 15/7/2016 15:47 by rivaldo
Panmure have reduced their forecasts for 30/6/16 to 5.6c EPS, or around 4.2p EPS.

They still go for 13.6c for next year, or 10.2p EPS, which I have absolutely zero confidence in DGS achieving given the huge profit increase necessary to achieve this above both the 2015 and 2016 results and the additional costs and reduced margins this H2 noted by the company.
Posted at 14/7/2016 09:02 by rivaldo
Not harsh enough :o))

I sold as soon as I could this morning, grateful I could get out due to a relatively small holding and with a decent profit.

EBITDA is way below forecasts.

There was no mention at all in the interims not that long ago of lower margins, added costs etc etc.

Plus a mere $4m debtor write-down!

And net cash has deteriorated since H1 by almost $1.5m given the additional credit facility drawdowns.

I now don't trust management to give me the full story. There's too much hope in margins recovering in H1. I'll keep an eye on DGS anyway - it'll be interesting to see the new forecasts.
Posted at 06/4/2016 13:09 by rivaldo
Cheers re the Techinvest info Aishah.

Looking forward to 9.51p EPS next year, if DGS continue to deliver it's easy to see a 140p-150p share price.
Posted at 06/4/2016 10:19 by aishah
Techinvest do not provide a target, but mention Panmure fcst eps 0f 3.92p(2015), 6.85p(2017) and 9.51p(2017). PG also reckon DGS will maintain an attractive divi.

They also mention that ClearLink, a direct competitor to DGS was recently acquired for $207m or 1.7x revenue. DGS's valuation is 0.6x trailing revs.

"On a prospective P/E of 8 for next year, the shares offer excellent value, underpinned by well-established revenues, leading technology and strong growth opportunities. Buy"
Posted at 17/3/2016 09:15 by rivaldo
Hastings' excellent write-up on DGS is now on the Cambridge News web site:



Extract:

"Broker Panmure Gordon has of this week, initiated coverage of DGS with a target price of £1.25p, citing existing core US customers being supported by opportunities elsewhere.

That sees an expectation of double digit revenue growth, solid profits and good levels of cash conversion which are backed up by a chunky dividend.

For full year 2016 the Broker has pencilled in pre-tax profits of $3m with EPS of 9.8c, while the dividend is expected to be raised to 5.2c, representing a handy yield of 6%.

At the current price this puts DGS on a PER of 9, but which falls to 6 based on the expectation of 2017 pre-tax profits rising to $4.2m with EPS of 13.6c."
Posted at 10/3/2016 18:02 by yump
Yes, in at float. It got a bit overblown, but I got caught out by the merger disruption which came out of the blue. Particularly disappointing as I wasn't expecting it to affect DGS that much, because customer acquisition doesn't stop for the companies merging.

That illustrated that DGS wasn't as secure as I thought.

Subsequently they haven't delivered on the overseas expansion plan and I don't think we're being told enough.

Hence my views on growth. Some of my views are perhaps tainted by disappointment, but the facts aren't. Which is why I looked back at the revenue figures to compare then with now and had some thoughts on their business model in the last post.

Anyone can check them.

I needed to assess whether to buy more when it appeared to have bottomed out, depending on whether I thought it would grow for quite a few years or not and in the end I didn't, although the lack of information inbetween results has also contributed to that. Mainly because I don't think we will get enough information to be able to assess DGS, until each set of results comes out. Used to be happy with that, but not nowadays.
Posted at 16/2/2016 10:04 by yump
If anyone here is seriously invested I suggest you look very carefully at all the figures you can get your hands on.

For example, they are comparing like with like here. Its factual, but misleading:

EBITDA is expected to be between US$2.2M - US$2.4M, an increase of at least 400% (H1 2015: US$0.5M). (Sounds great doesnt it ?)

From the finals:

Adjusted EBITDA* $3.0M (FY14: $5.4M) with strong second-half recovery to $2.5M (H2 2014: 3.28M)

So actually this half EBITDA is less than the previous half.

The first half to compare against is 2014 which was $2.3mln.
So its up 10% against that. Which it should be after all this time !

As I mentioned quite a long time ago, they are moving from the model I bought in for (managing paid search spend), into using lead generation in some form. Which is why lead generation expenses had a massive jump last finals.

Unfortunately, the information coming out of DGS means it will be finals before any real conclusions can be reached.

EBITDA looks like it will be back to 2014 levels.
However, the big BUT is that revenue will now be around 10mln higher at least.

So they may well have gone nowhere since float in terms of pretax profit, despite their main clients recovering from the merger disruption.

DGS needs some serious top-line growth. I guess it might recover to a reasonable share price level though - say a p/e of 10 after finals.

Still don't like their mushroom management of investors though.
Posted at 30/9/2015 19:09 by yump
On the face of the business itself, when I bought at float and the share price rose, a p/e of 20 something seemed reasonable enough; 30 was getting a bit rich, but then again the future looked rosy - and not just based on some pie in the sky jam either.

It is the last company I buy at float anyway, however much I convince myself of the quality, I always forget that the purpose of the float is not to make new investors rich !

I think I'm more bothered by the lack of the news that I was hoping for in the years since float, than I am by a fear of not getting back to the float price. Given a year or so of solid performance, the float price isn't too far away and at least the divi is fair, so I'm hoping not to be sitting on a loss in a year or so's time.

Best case is they start converting some of these discussions with major corporates into lucrative accounts. I'd still like some numbers for that UK utility at some point.

PS
Sometimes stocks behave in curious ways. KLBT has what looks like a quality business model, but is changing to SAAS, which has led to a drastic reduction in earnings forecasts for this next year. However, that share price has not got hammered like DGS did, despite being on a really high rating based on the forecast. (ie. the forecast dropped a lot, so the rating shot up from 20).

I guess its because KLBT was a 'planned' change, whereas DGS was an 'accident'.
Posted at 30/9/2015 17:45 by saucepan
Thanks, yump; some interesting thoughts.

Some related comments on the following fundamentals (courtesy of ShareScope):



Turnover (achieved and forecast), over the eight-year period depicted, shows a consistent/perfect growth pattern. By that criterion, DGS is a growth stock.

It is profits and eps that have been so inconsistent!

If DGS can deliver 2017 forecasts (yes, a big "if"; but, on the other hand, these might well be upgraded if the recovery is indeed on track; and I note management now sounds very optimistic and bullish): then, the forecast P/E of 8.3 looks very cheap, especially considering the P/E rating DGS has commanded in the past.

The last time DGS was achieving eps around 8.5p, the share price was well north of 250p.

I know and accept that investor confidence in the Company has been dented since then, and there will be a price mark down accordingly. Even allowing for that, I still think DGS looks very "cheap". Technically, a further critical consideration for me is the lack of overhead resistance now until north of 125p as flagged above.
Digital Globe share price data is direct from the London Stock Exchange

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