Datong Electronics Share Discussion Threads

[spob] 22/2/2013 09:40

YES, come on datong

[hezza123] 22/2/2013 09:28

I wonder what price this will conclude at? Tangible NAV is 54p, but if you include intangibles it will be more like 75p...

[hastings] 22/2/2013 09:15

Well done to you guys who bought at low levels. I guess the crazy valuation had to give,
One way or another.

[hezza123] 22/2/2013 09:07

Woo hoo! :-D

[deepvalueinvestor] 22/2/2013 08:25

They can have mine at 59p,lol!

[michaelmouse] 22/2/2013 08:24

It won't be for long dvi.

The company is worth at least twice yesterday's close price imo. If you consider the current balance sheet and long term prospects this is a steal for any company. They've got £2.5m cash for a start, and the company was worth about £5.5m yesterday.

Throw in a recent contract win for £7.5m over two years, and this is still a bargain at twice the price. My summary posted earlier this week is below:-



Michael.

[gingerplant] 22/2/2013 08:21

I think it's because Investegate wasn't working again so the market took time to wake up. I tried to get a decent qty at the open at 41p but the trade wouldn't go through.

I have around 60p as a reasonable & realistic price target. That would still only value it at £8.3m in return for which they'd be getting NAV of £10.27m, and £6.5m net working capital, in a £10m turnover profitable (just!) business with exciting technology it would seem for not far off "free".

Whether it will happen or not given the prevailing history of 39pps is another matter. It will all hinge on what Investec with 45% decide, i.e. it's still worth more than that but I can't see them getting a lot more. Time will tell but they can have mine for 60p.

[deepvalueinvestor] 22/2/2013 08:12

I don't get it, why is the price only 41p?

[deepvalueinvestor] 22/2/2013 08:08

Wow, happy days!

[michaelmouse] 22/2/2013 08:02

Interesting to see what the company eventually fetches, but it will be substantially more than the current price given that it's valued below its tangible assets.

Didn't expect to see a big profit on my purchases so soon, but when a company is undervalued I suppose you should always expect predators.:)

Michael.

[gingerplant] 22/2/2013 07:42

We're up for sale after an offer - all cloak and dagger due to the nature of the business I guess?

They can have my shares for 60p or so...

Following an approach by a potential offeror, the Board of Datong plc ("Company") has decided that it would be in the best interests of the Company's shareholders to seek potential offerors by means of a formal sale process. In accordance with Note 2 to Rule 2.6 of the City Code on Takeovers and Mergers ("Takeover Code"), the Board of Datong plc therefore announces that it is conducting a formal sale process.

[mirabeau] 22/2/2013 07:28

Is this inviting offers from potential suitors?

[deepvalueinvestor] 22/2/2013 00:50

the major contract win for Datong was on 19 December so three weeks after his note. He was away when it came out so I was assuming he didn't have the exact numbers at the time but perhaps I am being hopeful. What I really liked about this £7.5m r&d contract was that they beat off much bigger competition and will surely be selling hardware to this customer in the subsequent years at 80% margin so I see growth potential, especially if they invest the cash wisely.

[exbroker] 22/2/2013 00:05

Bob is very thorough in all he does, and it is a Canaccord corporate stock so he would have been offside on the numbers the evening before they came out at the latest.
DVI you have a good knowledge of the market and stocks and I like your value thread, we should work more closely together it may be beneficial to both our wallets.I am in the city by Liv st.station

[deepvalueinvestor] 21/2/2013 22:51

Fair comment. I didn't think Bob knew the exact details at that point and I was imagining an upward tweak in his numbers when he next does a note.

[exbroker] 21/2/2013 21:42

It was dated the 5 dec the day after the figs. The clue is in my name!! I have friends in some very low places!
Impact on the Canaccord Genuity view
We expect a large jump in revenue in 2013, driven mostly by a large potential
contract. However, the above investments to address trading volatility are expected to offset underlying profit improvement over the next two years. We revise our forecasts accordingly

[deepvalueinvestor] 21/2/2013 18:06

Ex broker,forecasts were prior to this latest news. I don't think bob Liao has produced a note since as he was away when it came out and, to be frank, the market cap is too small for them to bother with at the moment.

[exbroker] 21/2/2013 15:33

I have had a deeper look and I cant see the attraction, it is forecast to make no money for the next 2 years, and the risks of what is a tiny company seem to outweigh the gains over that sort of time scale. I will keep my eye on it as I think there will be an opportunity to buy stock cheaper during that time. I think that your buying had left WINS level or short of stock, I think the other MM have some.

[deepvalueinvestor] 21/2/2013 00:37

not much Bob can say that has not been highlighted in the tip from Cambridge. However, when he does produce a note I will forward any relevant thoughts to those on here. I had hoped to visit the company but had a clash of schedules. I will try to at some point in 2013.

[exbroker] 21/2/2013 00:20

As a private client Bobby Liao wont be able to talk to you, and he gets at least 200 emails a day just internally so you may have got lost in the system!

[deepvalueinvestor] 20/2/2013 18:31

Yes, me adding again at 38p and 39p but they wouldn't let me have any more and pushed the offer up. Some stock at 39.8p available.

[hastings] 20/2/2013 16:58

No problem Michael,
Little bit of movement today too.

[hezza123] 20/2/2013 14:16

Jolly good read, thanks hastings. Looks like I bought in just in time as a few buyers have appeared on the scene.

DVI - I emailed Liao the other day but not heard back yet.

[michaelmouse] 20/2/2013 11:19

Hastings - Excellent find, and extremely well written article it is. I hope you don't mind that I have re-posted it on my blog with a few further comments.



Michael.

[2baffled] 19/2/2013 22:57

DTE;
Miffed, imo..
Quite clear why they wish to DTI/DEI.

Update on NSW Proposed Changes to CSG Regulation