Digital Globe Share Discussion Threads

[cheshire man] 06/4/2016 09:07

DGS continuing it's journey north this morning :-)

[parvez] 06/4/2016 08:11

Aishah, can you summarise briefly what Techinvest had to say and their target price please?

[bruceylegs] 05/4/2016 17:27

That's the resistance at 76p taken out. There's not much from a technical perspective standing between here and 130p.

[aishah] 05/4/2016 09:56

Have also added. Techinvest New Buy in latest issue with a full page write-up. Very nice read. dyor

[pj 1] 05/4/2016 09:16

Yes Riv, I doubled my small holding this morning. Tried below the offer but nothing gave so went at the ask. Took some time so a guess not much stock about.

[rivaldo] 05/4/2016 09:09

..and today...nice uptrend developing, and small buying moving the price up slowly each day.

There's a March 2016 presentation on the company web site FYI:

[cheshire man] 04/4/2016 11:11

Good to see the buy's moving the share price north on a Monday morning :-)

[bruceylegs] 02/4/2016 12:55

DGS's Stock Rank on Stockopedia rose strongly this week, currently standing at 99 (out of 100). Stockopedia reports high values for Quality (93), Momentum (89) and Value (81).

[cheshire man] 29/3/2016 10:07

Good start to the week :-)

[parvez] 24/3/2016 09:53

So Panmure's 125p valuation without any bid premium sounds about right. Anywhere betweeen 125p and 185p would be nice :)

[rivaldo] 23/3/2016 12:30

Interesting that Clearlink, a competitor of DGS, has recently been acquired for 1.7 times trailing revenues.

Given forecast $46m sales, the same for DGS would equate to a price of around 185p per share.

Fingers crossed :o))

[cheshire man] 22/3/2016 11:50

Nice move up today I see :-)

[rivaldo] 18/3/2016 07:37

The share price held well yesterday considering it went ex-div for the interim 2.6c dividend (i.e around 1.85p).

[yump] 17/3/2016 09:24

Haven't you done any research of your own ?

As a growth investor, I suggest you do.

I'm sure you're aware as a long term buy and hold investor, that traders will take a short term view and action, while quoting long term growth possibilities.

[rivaldo] 17/3/2016 09:15

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."

[yump] 16/3/2016 21:33

Growth has not resumed. In a year, pretax and earnings will be about the same as they were in 2013- 2014. That will be 4+ years on.

I've lost count of the number of times stocks with low p/e's are touted as growth stocks when IN FACT there is a reason for the low p/e. In this case a major hiccup.

In the case of Chinese stocks, a series of disasters, while frequently being touted as having low p/e's but 'look at the growth'.

Same with Israeli stocks. Such low p/e's, so they're a bargain.

So if anyone is buying in here for genuine long term growth, please have a look at the way the business model seems to be changing. Consider whether there is reasonable progress in the new markets that were going to lead to growth (I don't mean just revenue growth).

One thing is for sure. Traders have a vested interest in getting long term growth investors to buy in.

But they will be out before any evidence of real growth that you are looking for emerges (or has a chance not to).

[oregano] 16/3/2016 12:19

some more coverage.

US based Digital Globe Services (AIM:DGS) arrived on AIM in February 2013 and saw its shares initially attract plenty of interest, buoyed by some excellent results and a rosy outlook.

Unfortunately circumstances beyond its control then derailed things. With its core customers having settled down, we think the sell-off looks overdone and it could be a great opportunity for new investors to take an interest in a business with high growth prospects that is clearly an expert in its field

To find out more about this unusual business with excellent growth prospects, please click the link below to download our latest commentary or visit the web site here

[oregano] 16/3/2016 09:57

i would like to get my hands on that note, see if they address the quality of earnings issue.

the problem is the service below seems to be full of free research, with the only hard to access pieces coming from Panmures and WH Ireland, which I am not going to pay £40 per month for. Any ideas?

www.research-tree.com

[rivaldo] 16/3/2016 08:15

Many thx hastings, very comprehensive write-up.

With 7p EPS forecast this year, and 9.7p EPS next year, it's easy to see where the new 125p broker target price comes from.

[battlebus2] 15/3/2016 17:10

Ditto Hastings...

[speedsgh] 15/3/2016 17:04

hastings - fantastic write up. last few paragraphs are particularly interesting with additional info gleaned from your meeting with the CEO & FD. many thanks.

[oregano] 15/3/2016 15:38

useful, thanks. so Panmures going for pre tax of $3m for the full year. Just delivered $1.1m in H1, so pretty bullish for H2. then 40% growth for next year. Not many companies offering 40% growth on 9x.