Densitron Tech. Share Discussion Threads

[mikey34] 03/2/2011 15:47

kidcharl,
Couldn't be sure but I don't think so I'm afraid......I think it just got whacked in the tech wreck just after that.Others might be able to tell you different.

[kidcharlemagne] 03/2/2011 12:32

Little help needed here. I just went through my old drawers. Found DSN cert bought march 2000; 1,631 shares at 4.25, yes 4POUNDS. and 25 PENCE, cost me £6,999.34. Please tell me there was some dillution. I don't care so long as there was a little somewhere. ;-)

[heartylaugh] 02/2/2011 18:15

"The board is reviewing the most appropriate mechanism for the return of capital and expects to make a definitive announcement as to the timing and method of this payment early in the New Year".


As it is now February one is again inclined to ponder what the Densitron board meant by "early in the new year". In simple terms, if I leant Fat Brian from the golf club £50 until 'early in the new year', I should be cross by now.

[idle dreamer] 01/2/2011 19:01

Has anyone else had a phone call from America (so she said) offering £3 to £7 quid per share. I gather the scam is you have to deposit some money into an escrow bond while the deal goes through. I asked if she had spoken to Mr Gyllenhammar yet.

[lcd interest] 28/1/2011 23:13

densitron employees are scared to disclose the factory names, they don't want you to know where they buy from

''welcome to densitron we sell the same products as everyone else, but with a higher prices, less credit and no stock holding!''

[heartylaugh] 28/1/2011 18:28

"The board is reviewing the most appropriate mechanism for the return of capital and expects to make a definitive announcement as to the timing and method of this payment early in the New Year".


As January slips away one is again inclined to enquire at to what the Densitron board might consider to be "payment early in the New Year". In other words, what is the payment and when will it be made?

Where have all the rampers gone?

[heartylaugh] 28/1/2011 18:24

"The board is reviewing the most appropriate mechanism for the return of capital and expects to make a definitive announcement as to the timing and method of this payment early in the New Year".


As January slips away one is again inclined to enquire at to what the Densitron board might consider to be "payment early in the New Year". In other words, what is the payment and when will it be made?

Where have all the rampers gone?

[heartylaugh] 22/1/2011 16:52

Gents

I have copied the following paragraph for free:

"The board is reviewing the most appropriate mechanism for the return of capital and expects to make a definitive announcement as to the timing and method of this payment early in the New Year".

When? One wonders.

[lcd interest] 21/1/2011 17:14

SP down again, tin pot distribution overhyped?

[lcd interest] 18/1/2011 11:24

Possibly an update regarding the orange project, and the special divi, development on the land etc.

[penguingardener] 18/1/2011 08:31

Last year there was a Trading Update on Thursday, 28th January - probably after the monthly round of Board Meetings?
So how about a mega update next Thursday (27th) or even this week, confirming a continuation of the 65% increase in revenue from the 23 November RNS, maybe a surge in eps and a 5p special dividend?
We live in hope!!
IMHO DYOR

[heartylaugh] 17/1/2011 23:11

"The board is reviewing the most appropriate mechanism for the return of capital and expects to make a definitive announcement as to the timing and method of this payment early in the New Year".


What might one reasonably expect 'early in the new year to mean'?

First week of January?

Second week of January?

Third week of January?

[heartylaugh] 07/1/2011 20:08

Woodcot

I don't think the Olympic commitee have planned on using the bit of Densitron land at Blackheath. What are you talking about?

H.L.

[heartylaugh] 06/1/2011 23:39

"The board is reviewing the most appropriate mechanism for the return of capital and expects to make a definitive announcement as to the timing and method of this payment early in the New Year".

[woodcot] 24/12/2010 21:18

They have got it on the books at a nominal value of £50k however even selling it on without planning it got to be worth £1 million.

Someone / some company will buy it and sit on it until things change regarding planning.

Also wouldn't take much to get planning for some form of sports complex especially with the Olympic due 2012...sports building of some form is / was there anyway.

[boxer beat] 24/12/2010 20:57

What is the book value of the Blackheath property at the moment ? (without the planning permission)

[woodcot] 24/12/2010 20:30

Thanks dosser2, interesting read.

[dosser2] 24/12/2010 19:54

Heres your answer:

Buy Densitron at 11.75p
Today (2010-12-24 09:44:03)
Print this Article Shares in AIM-listed Densitron Technologies are up from early Summer levels of 5p
Ssparked by a 30th June "beyond expectations" half-year trading update and...
23rd November announcement that "trading conditions have remained favourable" and...
that the board has "resolved to return... approximately 5p per share to shareholders"...
However, at a current 11.75p this designer and developer of electronic displays looks to remain materially undervalued...
As ever, I believe fundamentals will, in due course, win out
With more than 42.5% of an investment at the current share price being returned to shareholders in the New Year
The shares, at up to 16p, are an electrically charged 'buy'.
Densitron Technologies (DSN) describes its operations as "primarily the design, development, marketing and selling of electronic displays, the electronics that drive them and the plastics that house them". Its products are used in applications such as mobile phones, pagers, hand-held terminals and cash machines. In an increasingly technological world, the company has "no doubt that the market for displays continues to grow" and its wide range of technologies and product solutions look to position it well. Despite its small-cap status, Densitron is a significantly international business – 54.8% of first half 2010 revenue being from Europe, 35.5% from the US and the remainder from Asia.

The company, until recently, also held a 24.48% shareholding in Evervision Electronics Co Ltd, a Taiwanese display manufacturer with factories in Taiwan and mainland China. However, noting it "did not have significant influence over Evervision and the results of Evervision have never been consolidated in the group's accounts. It is unlikely that further capital reductions or other distributions will be made by Evervision in the near to medium term", this has been sold for £3.4 million in cash. "Evervision remains a supplier to the group and the group does not anticipate any operational impact as a result of the disposal".

At Densitron's 30th June half year date, its balance sheet showed £311,000 of net debt, though net current assets were £2.46 million and there was just £311,000 of non-current liabilities. The company received a £0.5 million payment on 3rd September having negotiated a capital reduction with Evervision and, following the 4th October announced sale of its Evervision shareholding, affirmed on 23rd November that it believes it "can achieve its growth targets from the cash being generated from operations and accordingly has resolved to return approximately £3.5 million (or approximately 5p per share) to shareholders. The board is reviewing the most appropriate mechanism for the return of capital and expects to make a definitive announcement as to the timing and method of this payment early in the New Year".

Finally of interest is a 1.25 acre strip of infill land the company owns in a residential area of Blackheath, London. Densitron announced on 11th November that a planning application it had made for the land has been refused – with the application against the current local authority policy. The company however noted it "always considered that obtaining permission would be a drawn-out process and that the initial application was the first part of that process. Densitron has several options of how to proceed and will now consider which approach is the most appropriate to give the best opportunity to obtain planning permission in the future. Densitron continues to value the Blackheath land at £50,000 in its books". The company has previously emphasised "should satisfactory planning consent be obtained the board believes that the value would be significantly enhanced".

P&L

Densitron's results for the six months ended 30th June 2010 showed a pre-tax profit of £97,000, from a loss of £189,000 in the corresponding 2009 period, on revenue up 18.3% at £8.58 million. However, the company highlighted then that this did not tell the whole story and that we "expect to see the growth in sales accelerate during the second half of the year".

Orders during the first six months of 2010 amounted to £10.6 million (from £6.0 million in the same period in 2009) and the order book at 30th June totalled £10.3 million, an increase in the period of £2.2 million. However, due to factory lead times extending and customer order schedules, there is a time lag in turning the growth in orders into sales. Encouragingly, it was noted the recovery was well spread; "the increase in orders has come from both new customers and existing customers alike and is across the group's product ranges".

An update on 23rd November suggested the company's confidence for the second half of 2010 has been well placed; it noting "since the interim results were announced on 13 September 2010, trading conditions have remained favourable. Revenue for the year to date is approximately 65% per cent ahead of the same period last year with all divisions returning a profit. The Group continues to develop a significant order book".

Forecasts, Valuation & Conclusion

I believe an underlying pre-tax profit of more than £600,000 is feasible for 2010, with around £1.5 million on ther cards for 2011. These should equate to earnings per share of c.0.70p, rising to c.1.7p. The company's statement about why it is able to deliver the planned return of cash to shareholders indicates its forward confidence in post-tax profit being significantly turned into cash (I note in the six months ended 30th June 2010 capex was just £40,000 and depreciation £23,000).

Broker Westhouse Securities estimates a Net Asset Value of c.9.7p per share. It adds "if planning permission were granted, then we estimate the land (at Blackheath) to be worth in excess of £5.0m, which could add in the region of 7p per share to the current book value". This would take the valuation to well in excess of the current 11.75p share price, leaving the earnings stream of what is a growth business in for much less than nothing.

Valuing the company at a conservative 8x forecast 2011 earnings + NAV (all tangible except £143,000 – 0.21p per share – of goodwill) suggests 100% upside – with the Blackheath land offering further growth potential. More than 42.5% of an investment at the current 11.75p looks likely to be returned to shareholders in the New Year, but even post-this my valuation suggests a target price in excess of 18p. There is also an emerging ordinary dividend to consider – Densitron having paid a 0.1p per share interim dividend, with the board considering the company to be "in a much stronger financial position than it has been for some time and are optimistic regarding the outlook for trading". A total 0.3p per share (2.6% yield) is anticipated for 2010, rising to 0.4p (3.4%) for 2011.

I met CEO Grahame Falconer at a lunch with a number of other smaller company chiefs earlier this month – and he is determined to sensibly drive this business forward. He is deeply experienced in the business (joining the board as Sales & Marketing Director in August 2004) and added to his shareholding in the company in early November, acquiring a further £8,750 of shares at 8.75p each.

Westhouse reminds that a "thin market may prove something of a barrier" – and I set an initial limit buying price of 16p. As ever, I believe fundamentals will, in due course, win out here and with a current target price of 23.5p, the stance is "buy".

[woodcot] 24/12/2010 18:18

Okay Hearty, we haven't seen you!

But how many did you buy the day?

What does Densitron actually do these days???


I'll keep asking the question until a satisfactory answer is provided.

[heartylaugh] 24/12/2010 16:54

You aint seen me. Right?

[niggle] 24/12/2010 14:55

10 yr and 480 gap to fill lol!

[niggle] 24/12/2010 14:55

I remember these, traded them in 2000, whats going on?