Defenx Share Discussion Threads

[the jitters] 16/9/2002 22:16

Forgot all about it! Doubt if much was said judging by the trade log. Pity, DFX could do much to help promote themselves but like most of these small companies they seem far too concerned about keeping their heads down out of the firing line.

Phil

[wild cat and pussy] 16/9/2002 15:57

Anybody go to the agm today?

[the jitters] 29/8/2002 01:47

Nah Stew, your view is far too pessimistic. Check out the companies RNS remarks over the past year or so, this turnaround in H2 was hinted at if you look. Its also hard to suggest a huge improvement in revenue is a fluke when the markets are so bloody tough, specially in their sector!

After their trading update which was basically a warning only a month after a reasonable update, about 12 months ago, you can understand the company being a bit cautious with its forward guidance as I doubt those previous remarks went down well in the city.

DFX is without doubt decently run, that can be seen by the quick turnaround after the business got into difficulties. As wild cat says, the share price might drift for a while but without doubt this should give us a good chance to accumulate.

Personally I just cant see why the share price is lower than it was before the H2 results given their cashpile which is greater than cap. with zero cashburn.

You watch, just to show how odd the market can behave, you watch KSS issue dire results resulting in the share price going on a flyer! I can just feel it! LOL

Phil

Phil

[wild cat and pussy] 28/8/2002 09:38

A large sell of 500,000 at 16p yesterday. Price may now drift for a while, which will be a good opportunity to accumulate.
Can anybody advise the date, time and place of the agm.
Thanks in advance

[stewjames] 28/8/2002 08:53

Alternatively Phil, H2 proves to be a fluke, revenues decline and margins are squeezed and your £1M gain speculation becomes a £1M loss.

I think it'll have to actually earn money before you'll see anything major happening and at the moment I'm doubtful that'll happen this year. In the meantime I suspect it'll meander around in the 15-20p range.

[the jitters] 28/8/2002 01:11

Seems to be drifting away again now. Crazy to think these were worth more for the 6 months preceeding the astonishing H2 results than they are now.

Still patiently holding.......and waiting........and waiting.......and waiting..........

[the jitters] 31/7/2002 14:06

Well lets pluck a few figures from the air and have a guess.

Lets assume the company build a little on their H2 recovery and make £1m this coming year, throw in a PE of say 10 and add in the cash, we should have a market cap of around £26m which equates to a share price of 38p. A 2m profit the year after on the same PE would give us 52p.

Considering DFX are still valued at less than cash (cash they earned by the way, not begged from the city) I think we still have plenty of upside to go yet.

Current share price is only back to where it was a couple of weeks ago so in many respects you could say the results are not yet factored into the current price at all.

Phil

[wild cat and pussy] 31/7/2002 09:25

Dfx is fying today - up 1.5p. The value of the business will soon be appreciated. Given asset(cash) backing, how much is a £12-20m business worth, with products and IP at the forefront of technology?

[hugepants] 31/7/2002 08:29

I like the look of the Voice over IP and DSL stuff. This should hopefully be a growth area. See the web-site under "broadband access".

[wild cat and pussy] 30/7/2002 21:46

The Jitters - agree that dfx has some good potential in its offerings. At the moment, valuation is less than cash, so that the business has a negative value. Given the product technology, significant upside is possible - £20-50m.

[the jitters] 30/7/2002 21:21

Anyone taken a look at this new product yet? Had a look earlier and think it looks very sleak and stylish and could be one hell of a seller once its availability grows.

[hugepants] 30/7/2002 10:20

you're welcome.

[wild cat and pussy] 30/7/2002 08:34

Thanks for kicking off a new thread.

[hugepants] 30/7/2002 07:31

"Dataflex Design Communications Ltd is a designer and manufacturer of innovative access solutions for telecom service providers in the telecom sector, and is the leading European supplier of call routing solutions for the residential and SME customers of the alternative telecommunications operators. In other words, Dataflex's equipment provides alternative telecoms companies with the means of connecting/routing their customers to their networks."

For background see web-site at www.dataflex.co.uk

Cash of around 21p, Shares to buy 18p

Amazing turnaround in the 2nd half with revenues increasing from 4.9M to
8M, and overheads being drastically cut. Negligible loss of 58K for the 2nd half.

Forward order book is healthy at 5.6M. Slightly up on the forward order book for the 2nd half of 5.4M.

Looks a very safe value stock with large upside potential when the telecom operators really start spending again.


One to consider but please do your own research.


Huge

[the jitters] 29/7/2002 12:04

Do you mean Gerry O'Prey? If so then he has resigned as an executive director but is staying on as a non-executive. He sites a need for more time to be spent on some of his private ventures as a reason.

He holds 17.4%, and see no particular reason why he should be required to sell them.

Phil

[tone] 28/7/2002 14:02

How many shares does the leaving director own. What will he do with them ?

[hugepants] 28/7/2002 02:55

stylish website at www.dataflex.co.uk

Huge.

[the jitters] 26/7/2002 14:01

Thanks wildcat.......that handle has become a thorn in my side!!!! ROFL.

I bought DFX ages ago after their first half results at 20p and whilst I always believed the management were shrewd enough to turn the company around, its always reassuring to actually see the evidence.

I have a portfolio full of cash rich companies right now and sleep like a baby ;o)

Phil

[wild cat and pussy] 26/7/2002 13:32

The Jitters - like your name.
My comment was downturn? My inkling is that the product offering is possibly the next major musthave and agree that given the cost saving nature, even in a downturn this could go well.
I try to balance my ideas, but after the results dfx looks very solid, extremely well capitalised and one where you can sleep well at night.

[the jitters] 26/7/2002 13:19

Check the newsflow on the dataflex website, this increase in revenues was hinted at by a couple of analysts after their recent tie-up.

Not sure about wild cats possibility of further downturn in telecoms considering dataflex products save customers money! I think the second half numbers are proof of this and after the management were caught napping, it shows considerable skill on their behalf to turn dataflex around so quickly in difficult market conditions.

I like this company very much and always have.

Phil

[wild cat and pussy] 26/7/2002 08:42

Some of their VOIP offerings could still be attractive even with weak telcos market. If so, there could be very strong growth to come. The second half revenues were very strong. Maybe dfx has more intellectual property than is being given credit for. The situation was also turned around very quickly. In this case the directors significant holding could be important, as they are alligned with shareholders' interest.

[hugepants] 26/7/2002 08:35

Problem is the tech (especially telecoms) sentiment which is so negative just now. Thats why I was pleased to see the forward order book so strong. That and the big increase in revenues over the last 6 months (4.9M up to 8M).

HP

[wild cat and pussy] 26/7/2002 08:20

The product business should have a value of at least £6m or at least 8p per share. This looks a seriously undervalued share.

[hugepants] 26/7/2002 08:09

Im in.

Significant discount to cash in bank and business break even. And forward order book is strong.

[wild cat and pussy] 26/7/2002 07:43

Cash in the bank c.£16m. No debt. Share cap and reserves £15.3m. Very clean balance sheet. Mkt cap £10m. Small loss in second half. Directors have about 43% of equity. The main risk is that they are a supplier to telecoms. Further downturn? They do seem to have some interesting product offerings in markets which shoudl still grow. Could be one to stick away!