Dm Share Discussion Threads

[guru11] 06/8/2010 12:15

Price now 7.05 / 7.25

Unless there is a black cloud around the horizon,
the price appears to be amazing cheap, on on historic pe of just 3.3 !!

Why do the MM keep marking the stock down on very little trading ??
Think that the MM are trying to scare punters into selling at a low price when it goes down to their stoploss price in order to buy on the cheap, to then sell 2p higher next month when the price goes back to 9 - 10p again.

[guru11] 23/7/2010 08:47

Price still at 7.75 / 8.00
but normal market sizes very limited - Buy 10,000, sell 3,334

MM still playing games I believe.
They want to hold on to the stock that they do have,
so they can sell at a much higher price when the results do come out,
or any sizes outside that range and the price will have a premium.

[guru11] 21/7/2010 08:13

Price now 7.75 / 8.00

Interim results due mid September.
I can see these then after results being 9.50 / 10.00,
as I am sure that management will not disappoint,
and because of the very low valuation.

[guru11] 14/7/2010 16:38

Last year renvenue appeared to be up 40%, but admin costs up 115%. £800k on last years turnover should not have too much effect. However the revenue and costs figures will be interesting to look at at the half way stage.
The company figures have been fairly consistant, so lets hope this continues.
Normally when there is not much trading and a number of small sells any share price does drift, until the results are announced then the share price goes up 2p until the same happens again.

[jeff h] 14/7/2010 11:30

guru - how much of a hit (if any) do you think they took from the BT bad debt provision review?....worst outcome = £800k.

[pauliewonder] 14/7/2010 08:59

This looks like its trading in a range between 8-12p. Don't see any reason why this won't go back to 12p on some news of trading being in-line.

[frank sidebottom] 14/7/2010 08:31

Morning guru.

Frappacino update?

[guru11] 14/7/2010 08:29

It is time for investors to go to Starbucks and get a wake up coffee. Why

DMP - offer price now 7.8p pe ratio just 3.6.

You would think that DMP is heading for disaster on this sort of price instead of being a well managed companay with a good 4 year track record.

[guru11] 06/7/2010 08:07

I believe that given time, with another one or two set of results, the share price will rise and then hold its new price. The stock is too good for this not to happen.
A pe of 4 is quite silly.

[pauliewonder] 05/7/2010 08:58

Its a shame because this is definately a solid business which seems to be growing at a good rate. They've made some decent buys by the looks of things and have a good record of turning around acquisitions.

May still have a dabble at some stage.

PW

[aa29] 02/7/2010 13:16

pauliewonder

The scrip dividend was done, I presume, because Adrian Williams had a need for the cash. I didn't get an adequate reply to the point that if they were extended cash wise after DLG, it would have been simpler to use some of that cash to reinvest in the share alternative of the scrip dividend. The open offer price then lowered the share price further.

DesWalker - AW actually has voting rights of about 80% and it is a big negative. It does appear to be a well run business but after the scrip dividend affair , I now have far fewer shares here.

[deswalker] 02/7/2010 08:11

Just had a quick look at this. The numbers look good and I thought I'd found another candidate for the portfolio. But then I discover that the main guy owns 71% :( IMO that is the reason it is this cheap and puts me off straight away. Good luck with it. Des

[guru11] 02/7/2010 08:00

I am confident that given time the share price will reflect true value, as managment over the last 4 years have a proven track record, and the pe ratio and prospects of continued profits at present makes this stock an outstanding buy.

This stock has gone off punters radar screen at present but I am sure will return.

[pauliewonder] 28/6/2010 10:24

True Guru.

Was in DMP a while ago and then sold after the scrip dividend.

Just done some quick analysis and the company are valued at half the price that they were in 2007 (which admitedly, is the case for many companies at the moment as we were riding the crest of a wave).

However, after doing a little bit of analysis it seems that these are very undervalued at present:

- Current share price 8.75p
- Mkt Cap 14.55m
- P/E 3.9
- NAV 8.71p p/s
- Net debt reduced by £7m in the year (some through a placing)
- Step change acquisition
- Highest ever profit
- Highest ever turnover (and step change in company history)

One thing that I don't understand, is why they did the script div, and then issued more shares to make a recent acquisition? Seems a bit clumsy in my opinion.

That said, were looking at a company with solid profit growth, that recentlyt bought DLG (worth around 70m about 2 years ago), which is valued at the same price as Net Assets.

May look to get in at about 8p, because I agree with you Gurur, this souled easily be 12p.....and more in my opinion.

[guru11] 15/6/2010 20:29

The stock has gone into sleep mode.
A waiting game.

[guru11] 20/5/2010 07:52

These are still only on a pe ratio of 4.1. Even if one just sits on them for 3 or 4 years and they maintain the current profit levels it would be amazing if the share price did not rise, as they are getting cheaper and cheaper on fundamentals. When will Joe Public investor wake up to this? These should be worth at least 12p.

[guru11] 13/5/2010 10:46

Looks like we may well have to wait until mid September for the interim results for any change in the share price Would have thought on such a low pe ratio that we should be looking for some kind of dividend as well.

[guru11] 07/5/2010 13:50

DM plc ("DM" or the "Group")
AGM Statement
DM, the direct marketing group specialising in customer recruitment and database
management, held its Annual General Meeting today and all resolutions were duly
passed.

At the meeting, Chairman, Adrian Williams, made the following statement:

"In 2009, the Group delivered robust performance in difficult trading
conditions. 2010 has started satisfactorily with the Group well placed to
provide integrated online and offline lead generation and direct marketing
services to the market particularly when trading conditions in the broader
economy start to improve."
* * ENDS * *
________________________________________________________________________________

That is it folks - think we must wait a little longer for the share price improvement.

[guru11] 22/4/2010 22:31

Thanks AA29, something to look forward to.

Business appears to be good, but we need hope of a share price rise sooner rather than later.

[aa29] 21/4/2010 15:56

We should get a trading update on the AGM day - 7 May.

[guru11] 21/4/2010 08:29

Another month has passed - with apparently as far as I can see or not see - without any write up in the I.C and virtually no trading or price movement, despite the consistant results and low pe ratio.

This is truly a waiting game for the market to wake up to the fact that the price is cheap.

[guru11] 18/3/2010 08:18

We could be either looking for the IC comment or interim results now for any movement in SP, despite the historic pe ratio of just 4.4

I believe it is a waiting game which will prove dividends for those who are patient.

The price will rise give time.

[guru11] 10/3/2010 10:35

The only thing is that DMP share price could tread water and may even once again drift, dispite the low rating. However it will be interesting to see what the Investors Chronicle write about DMP as they do favour the stock. My guess is that they will have it down as a buy, but even this may not move the stock.

Normally with consistantly low rated stocks they do achieve true value given time. DMP has good management and has achieved consistantly good results so I am sure that given time we will see this stock re-rated even if it does take 2 or 3 years. I am in for the long term.

[jeff h] 10/3/2010 08:44

Cheers guru I wonder if the below news will be beneficial to the company

Sting in tail of the Royal Mail deal: more junk mail

Believe it or not, the amount of unsolicited post delivered through our letter boxes has until now been limited by a union deal. But that's all about to change ...