Digital Globe Share Discussion Threads

[yump] 09/10/2015 20:48

Pretty much zero from a business point of view.

The adblocking stuff applies to all the annoying banners, pop-ups, backgrounds, retargeting ads. etc.

Not to pay-per-click delivered by search engines and not to most affiliate sites (which DGS are using more now than before).

[saucepan] 09/10/2015 19:02

Just out of interest: does anyone see any "read across" here from the Alogrithms fiasco today? (At least, DGS is not Israeli!)

[fillipe] 07/10/2015 17:42

It takes almost nothing at all on the buy side, to move DGS higher with each trade.

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[tromso1] 07/10/2015 16:24

Nice breakout. 100p getting closer.

[cheshire man] 07/10/2015 13:20

Not complaining Masurenguy :-)Volume increase today and thinking maybe tipped somewhere ?

[masurenguy] 07/10/2015 11:53

Up by 50% over the past 7 weeks ! :o)

[rivaldo] 07/10/2015 11:15

DGS is pretty illiquid, so potential buybacks of up to $500,000 could make a big impact on the share price.

They'll have to try a bit harder than Monday's RNS though! Perhaps we're now seeing some more buybacks going through.

[fillipe] 07/10/2015 10:26

6-10-15 N+1 Singer CORP 2016 eps/div = 6.17p and 3.15p. 2017 is 8.55p and 5.14p.
What is there not to like!
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[saucepan] 07/10/2015 09:22

I added today.

[fillipe] 07/10/2015 08:53

74.4p paid this morning - for quite small lots. Still only 6500 shrs in total showing on the bid/ask on level2.

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[deanowls] 06/10/2015 10:50

Yes they are eally going for it, surely there is more stock around than that, even the rns must have cost more to organise!

[oregano] 06/10/2015 08:50

SP, i see their morning daily with reference to their high conviction picks, but didn't see the whole note.

Possibly the most bizarre share buy back i have seen.

[saucepan] 01/10/2015 10:47

oregano: thanks for that info. Is it in the public domain - i.e. is there a link to it?

[oregano] 01/10/2015 09:43

For what it is worth, Singers has included this in a list of 12 high conviction buys.

[saucepan] 30/9/2015 19:33

Hope you get your money back and we will both be happy :-)

With new IPOs, in my experience, it can be a lot safer letting them form a chart base pattern (which often takes the form of a bowl) and then investing. Some run away from the off, and never look back, but that scenario tends to be rare. Having said that, DGS would not have fitted such a mode of investing, either! It has, however, formed a base and appears to have started an uptrend - which was crucial for my own recent entry. I'd be out if the stock made new lows.

Thanks for the discussion.

[yump] 30/9/2015 19:09

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'.

[saucepan] 30/9/2015 17:45

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.

[yump] 30/9/2015 15:32

eps growth shows you a recovery is on track.
The p/e shows what the rating is.

The PEG however shows the rating vs. the growth rate and it always was a measure for tracking the value in a stock that is growing, not a recovery stock.

Clearly if the growth rate is up from a bad hiccup (eg. halved eps), it will be up for instance 100%, which will distort the denominator in the calculation, to give an unusable statistic.

So the PEG is inevitably very low. But its not really a measure of anything useful in those circumstances.

Slater wouldn't ever use PEG in the recovery years of a recovery stock, or for that matter a stock moving from break-even into profit, although plenty of people try to give it meaning.

In those circumstances its a false statistic.

On that basis, in the extreme, you could give a stock that has a tiny eps due to a temporary spend or investment, a really tiny PEG, based on the following year, but it would be meaningless.

eg. eps drops to 0.5p per share from say 5p per share and is then forecast to rise to 4p per share the year after. At a constant p/e of say 10, the PEG would be 10/800 = 0.125.

The stock hasn't even recovered to pre bad year, but the PEG looks like a huge bargain.

I've seen people on these bb's appearing to buy stocks based on a very low PEG, when the stock is actually just about to move from break-even into profit, which is scary. In the extreme, you could easily have a growth rate in the 100,000's, to divide by.

Anyway, for DGS a p/e of 10 seems a bit low, if earnings really are secure (yet to be proven) and it really is a growth stock.

[saucepan] 30/9/2015 14:55

I don't see why the PEG is irrelevant, but have no issue if you personally do not find it helpful. For me, it is helping to flag:

(a) that a recovery does indeed appear to be on track. Not all bombed out stocks do recover, and I can find plenty of stocks that have suffered similar massive downtrends with nothing like an attractive PEG currently.

(b) the (good value) price being paid now for forecast earnings growth.

[yump] 30/9/2015 10:58

Irrelevant to use PEG on a recovery stock. Clearly they will all have low PEG's temporarily, but they are artificially low.

Question is what p/e is justifiable.

[saucepan] 28/9/2015 14:51

Still very quiet here considering the tremendous momentum; long may both continue :-)

There is no obvious overhead resistance now, until north of 120p.

DGS looks incredibly cheap on current fundamentals:

Rolling P/E 2 = 9.8

Slater PEG = 0.04

Projected Yield close to 5%

[rivaldo] 28/9/2015 12:28

Buying at 68p now.

Assuming last year's H2 continues through this year with no growth at all, DGS will make $5m EBITDA, i.e around £3.3m, against a £20.5m m/cap,

The forecast of 6.17p EPS this year, with a 3.15p divi, represents a £1.93m PBT.

There was $1.46m of depreciation and amortisation last year (against $852k the previous year), so I guess attitudes to D&A will partly determine upside from here.

[yump] 25/9/2015 13:25

Its a good divi if buying around this level. Not so great for float holders though.

The growth is going to take 2 years to get to where it was supposed to be in the first place, so its 'good' from a low base. Nice recovery play for anyone though.

What sort of a rating it can hold is anyone's guess. Does rapid growth from a bad dip count as much as rapid consistent growth ?

[fillipe] 25/9/2015 12:39

N+1 Singer 24-9-15

N+1 Singer 24/09/2015 CORP

2016 eps/div 6.17p/3.15p

2017 8.55p/5.14p

Wow!

f