Dotdigital Share Discussion Threads

[pentangle] 03/4/2014 12:29

Personally the value of my shareholding here has become rather frightening and I am going to have to take some out eventually just to get some balance. Not quite yet methinks.............

[pentangle] 03/4/2014 12:26

Looking back at the Magento annoucement it really demonstrates the potential in this business. This application only launched six months ago and already has over 75 customers spending an average of £1,200 a month which, if my maths is correct is an annual turnover of something over £1m.

In some cases these customers have had a return of over 5,000% ie 50 times plus what they paid DOTD. And these are only 75 out of 6,000 of Magenta users. With this sort of return the salesmen can hardly be finding it the hardest of sells! So huge potential in just this one new product.

I think what you are seeing in the share price is some appreciation of this huge potential for future profits rather than the share price getting frothy.

[eddyeagle1979] 02/4/2014 10:30

Loving it - doing all the right things here!

[chester] 02/4/2014 08:13

What a lovely looking chart...

[bwilder2] 02/4/2014 07:15

This is like winning an oscar for DOTD.

[bwilder2] 02/4/2014 07:11

How good is that RNS might hit 40p this week.

[pentangle] 31/3/2014 11:35

I hope TrentEndBoy did not go ahead with his short (see Post 523) - could be painful!

They say the trend is your friend or some such rubbish and this has been clearly trending in just one direction for six months or so now.

[eddyeagle1979] 31/3/2014 09:53

Trending up nicely...

[bwilder2] 31/3/2014 03:18

I dont think the divi is enough to put off a takeover for this very intresting company.

[apad] 24/3/2014 15:03

16 jobs on offer, so I increased despite high PER.
Not a large holding though.
Steady PI buying.
apad

[trentendboy] 01/3/2014 22:06

Over done.

Might be a nice little short. Lol

[pentangle] 01/3/2014 00:27

I think it's been in a breakout for about 6 months now, during which time it's doubled!

[chester] 28/2/2014 10:04

We've got ourselves a Breakout.

[bwilder2] 19/2/2014 14:20

Just look at the 6 month chart,The evil mms always tree shake after a rise.Great share to have,

[noli] 18/2/2014 18:29

Can anything be taken from this.

[noli] 18/2/2014 18:06

Company Presentation 11 Feb 2014

[barnesian] 13/2/2014 11:20

I see Old Mutual plc disposed of 2.4m shares the day before the Interims were announced. That probably explains the massive buy volume commented on by Johnv above, which might have been back-to-back buy/sell trades. It might also explain the weakness in the price.

DOTD is hard to value using traditional P/E or EV/EBITDA ratios as the Earnings are understated compared to a more traditional licence based software company, and the risk in DOTD (and hence implied discount rate) is much less because of the recurring revenues.

I also note that Marketo and Jive Software, two SaaS software companies, announced today with losses and disappointing results.

As I mentioned above, DOTD is remarkable in being able to generate substantial and growing recurring revenues at relatively low cost and very high current margins. Other SaaS companies must wonder what their secret is and might be prepared to pay for it!

[apad] 11/2/2014 13:01

Liked the video interview - straightforward.
I'd like to understand more about how email marketing has a future. E.g. I buy a lot from Amazon, but their marketing emails are filtered. So what do I deduce from that?
Anyone know of a source of trade information? I'm a bit lost in this sector and dotd's rise has made the company a much bigger part of the portfolio than I had planned - wish all of my problems were like that:-)
apad

[hastings] 11/2/2014 12:59

Oops! cheers for that gnmartin.

[gnnmartin] 11/2/2014 12:26

hastings: I think you meant to post

[painter] 11/2/2014 11:47

Re. video interview. Liked what Peter Simmonds had to said but he should stick to radio! Jeans and a jacket and open shirt, very late 70's wide boy image. PR department not looking after him.

SP down on a good day? Can't see why.

[hastings] 11/2/2014 10:48

Some thoughts that may be of interest.

[steffyloveshares] 11/2/2014 10:47

video interview

dotDigital Group sees revenue gains continuing into second half

Peter Simmonds, CEO of dotDigital Group (LON:DOTD), tells Proactiveinvestors that the second half has started well and the company feels comfortable with the projected revenue increase anticipated for the current period.

[barnesian] 11/2/2014 09:04

This is an unusual company in that it is combining the recurring revenue and cumulative build of a SaaS business model with very high margins.

Generally SaaS businesses struggle on margins, at least in early stage, because they are incurring the expense of generating revenue for the long term but can only recognise short term revenue.

Very interesting business. One to watch I think. It would be good if they declared a progressive dividend policy (to match earnings growth). They have the secure cash generation to back such a policy. It would do wonders for the share price.