Dmatek Ld Share Discussion Threads

[spaceparallax] 15/7/2008 14:00

Elm,

Know what you mean, although I'm not averse to shuffling my stocks.

[elmfield] 15/7/2008 13:40

trouble is we all feel so bombed out the drive to buy is not there!
suppose that is a bear market for you,

[gerdmuller] 15/7/2008 11:58

Market cap equal to sales at 105p.

In the past 5 years eps would have risen each year from c1.6 to c25.
Compound growth of 73 percent pa.

Rev from $16m to $54m. Compound growth of 28 percent pa. Both organic and through acquisition which was paid for out of cash flow.

Yet nobody loves it and it is being given a rating by people who would be killing for less in normal market conditions. Markets give very few opportunities to buy quality at this price.

[gerdmuller] 15/7/2008 10:05

Dtk has always had increased rev in H2. So keeping the same margins as last year would give the following if they achieve rev of $54m for FY.

Sales 54,000 Gross profit 33,500 Op profit 6,600 Pre tax profit 6,970
Post tax 5,576.

That would be an eps of c25 (12.5p) 30 percent up on last year.

At 105p these would be on a pe of 8.4 peg of 0.37.

At 150p these would have a pe of 12.5 peg of 0.5.

At 200p these would have pe of 16 and peg of just 0.7.

[spaceparallax] 15/7/2008 09:23

Great TS - looks like one of my defensive shares is doing well.

[elmfield] 15/7/2008 07:36

I will be putting a buy order in this morning if I can buy at around the pound mark, that is for sure.

[spaceparallax] 02/7/2008 09:52

Thanks Funch.

[funchalman] 01/7/2008 21:38

for all those still holding

Monitoring Bracelets
The Polish Department of Justice will soon announce a tender to build an electronic monitoring system for offender supervision which will enable petty crime offenders to serve their sentences outside prison. The tender will include providing bracelets with electronic transmitters and also creating and implementing the whole system itself. Łukasz Rędziniak, Deputy Minister of Justice and supervisor of the project, said that more information will be published on the department's website on Monday. The idea emerged during former Justice Minister Zbigniew Ziobro's term. The first bracelets will appear in September 2009. "The system will keep track of about 15,000 offenders annually. For a start, we want about 3,000 offenders to wear these bracelets," said Rędziniak. Companies willing to take part in the tender will have a free hand in choosing the technology, and the winner will have to build the whole system from scratch. The monitoring centre will be located in a building belonging to the Ministry of Justice.
Rzeczpospolita

unquote

dmatek are no doubt working on the tender at this moment.

[napoleon 14th] 28/6/2008 22:52

Turnover is vanity.
Profit is sanity.
Cashflow is reality.

DTK has no probs except that, even on a support & screaming good value, there's not much cash chasing this or anything else for the moment....

Hohummmm....

[yangou] 28/6/2008 09:22

I agree with your view too Gerd. Also with Space.... Try Jacobs Creek Reisling

[spaceparallax] 27/6/2008 10:29

Good post Gerd,

I agree with you except on the choice of wine.

[gerdmuller] 27/6/2008 10:26

If this all this macro doom and gloom carry's on much longer we'll all be out of business. I've already had to sack the butler and stop drinking Blue Nun and move to a less sophisticated brand.

On the bright side though I suppose it will lead to more criminality.

DTK now on forward pe of 9 and 7.8 with peg of just 0.6.

Market cap is £23m about equal to sales.

Cash of over £5m means all this potential growth is being valued at about £18m.

Either I am wrong about this one or everyone else is wrong and I am right. But generally when you look at figure like that and consider the past and future growth then things usually come good eventually as everyone discovers I was right all along.

There is always a danger of course that some astute investor comes along and steals all this value from me at these knock down prices and if these conditions persist for much longer them takeovers will be done at bargain prices. But hopefully these can bounce back before anyone is able to do that.

Spanish kept waking me up last night blowing their horns but I still don't think it is clouding my judgement.

[taylor20] 24/6/2008 14:30

Thanks Gerd, most other accounts I've read have the operating cash flow as the start point for Cash Flow, rather than Operating Profit, make sense in that context.

[spaceparallax] 24/6/2008 10:20

I've always regarded DTK as a good defensive share, likely to weather economic problems i.e. the uses for their products are unlikely to diminish and if anything they offer attractive cost-saving potential.

[gerdmuller] 24/6/2008 09:52

As Bill Clinton always said, "its the economy stupid".

Prices of many companies driven down by more fear in the market than I have seen for a long time. Markets are pricing in huge economic slowdown where banks dont lend, notheing gets built, massive fall in property market and retailers selling nothing.

That may or may not happen but when recovery finally comes companies like dtk will be a bargain.

Cash flow is a good example, it generates loads of cash for a small co and that is the problem with the acquisition in that it brings in dep and amort.

Cash flow from operatioms was $4.5m but becaues dep and amort are an accounting cost and not an actual reduction in cash they have to be added back in the cash flow account.

Hence net cash flow from operations of $8.1 million for 2007.

[taylor20] 23/6/2008 21:56

No, I keep going over the accounts, I guess its that the headline EPS is not the steller growth story some were expecting?

£25m market cap

£12 NAV excluding the £5m intangibles, of which £5m is cash

Throwing off >£5m cash each year, cash positive even after major acquisition

I'm sure they are over egging the depreciation as well.

However can anyone explain why depreciation and amortisation is included as part of the cash flow?

[spaceparallax] 23/6/2008 09:42

I really don't understand what's happening with the share price

[spaceparallax] 18/6/2008 09:55

Good news, might help gee up the share price

[gerdmuller] 18/6/2008 09:44

Yes, small co in practically every market in the world. Forward PE of 10 and 8.8 for year after.

In normal market conditions this would probably be on a pe of between 15 and 20. In bullish market this would trade at above 20.

I have KWL which ic showing similar fundamentals and still on forward pe in single figures.

Growth companies have rarely been cheaper. Both cos are not solely exposed to western markets.

The big danger in these conditions is that companies get taken over at very low prices and someone else buys all that future growth.

But the future still looks very bright for both cos and I buy on any weakness.

[elmfield] 18/6/2008 07:46

another lovely contract, like it says in the header, tagging the world!
A global leader with so much to come and yet still this small...hold/add, imv.

[spaceparallax] 13/6/2008 10:44

I agree that given a more buoyant Mkt, the share price would be much stronger as the Company is beginning to deliver. Also, it's worth remembering that with the acquisitions being only relatively recent, DTK haven't really had the opportunity of demonstrating a significant return yet. As with most such shares patience will be rewarded, especially given that the business appears okay and the cash position is sound.

[gerdmuller] 13/6/2008 10:00

You should take a look at bank and building shares. The fact is the market is in one of its worst states for many years and many stocks are pricing in a deep recession. Nobody is buying at the moment and shorting is the only game in town.

This co has constantly grown profits and is well placed to grow but buyers are just terrified of getting into anything. In this market it is no surprise that this is not rising, the macro situation needs to clear first but when it does dtk still looks a great co.

[elmfield] 12/6/2008 17:46

napoleon that is good news, might add some motre to a growing pile! been a pretty good place to be when you look around !!