Dotdigital Share Discussion Threads

[dannyt90] 09/3/2018 08:51

Another start in the red!

[dannyt90] 08/3/2018 13:54

I had another look over the finances and numbers and I still really like this company and if I wasn't already bought in, I would do so regardless of the fall in value. There just seems to be no rising movement for awhile now.

[zeus19] 07/3/2018 16:26

Thanks for that

[eastbourne1982] 07/3/2018 16:20

My short is coming off nicely thus far.

[2vdm] 07/3/2018 15:55

I needed fund elsewhere so sold 50% at 87p fortunately although as a LTH my average is in the low 30s. I don't understand why it's dropped to sub 80. Got to be worth more than that surely and I may have to look at buying some more as I think that this is looking oversold now.

[dannyt90] 07/3/2018 13:26

Motley Fool: Enterprise-grade marketingMicrogen's customers are generally quite sticky, as a lot of work can be required to move to a rival. That's also true of my next stock, online marketing specialist dotDigital Group (LSE: DOTD).This firm produces dotmailer, an enterprise grade online marketing system that's built around email marketing.  This may seem old fashioned, but it's still surprisingly profitable. Last year, this £250m company generated an operating margin of 25% on sales of £32m.Partners with whom dotDigital integrates include Shopify, Magento and Salesforce.The firm released its half-year results last week, triggering a slide that's seen the shares fall by 14% in eight days. Is this a buying opportunity, or a sign that growth might be slowing?I might buySales rose by 25% to £18.8m during the six months to 31 December, while gross profit rose by 20% to £15.6m during the period. However, operating profit only rose by 1.8% to £4.4m.The difference in growth rates between these two measures of profit was due to a big increase in administrative expenses, which rose by 26% to £11.1m.Will this extra spending drive future profit growth, or is it a sign of bloat? I'd need to do more research to be sure, but it's worth remembering that dotDigital has delivered average sales and earnings growth of more than 20% per year since 2012. This is a company that's delivered on its promises.Although the shares trade on a forecast P/E of 28, I'd continue to hold and might buy if they dip below 80p.

[dannyt90] 07/3/2018 13:21

I really like DOTD and chose it because of its great finances and still am a big fan. I'm in for the long term but DOTD is killing my portfolio and I only bought back in December at 98p. Anyone else in a similar situation? If so are you holding for the long term?

[rosco40] 07/3/2018 13:15

In my opinion, it started as a tree shake but has inadvertently triggered a sell off by small investors who are seeing paper gains made over several years evaporate in the space of few days.

[nhb001] 07/3/2018 13:01

I am really surprised by the recent declines in the share price. I know people are nervous after the recent volatility but DOTD seems to be doing all the right things. Unless the market experiences the long awaited crash I am sure this is going to look like a real opportunity at this price.

[valhamos] 27/2/2018 16:31

A few comments above about the increase in cost of sales or decline in gross margin (83% from 87%) yet that is wholly attributable to the Comapi acquisition. The report should really have included more useful information in the financial review (not much there other than discussion on revenue). The key number not explained was the large increase in admin costs which I guess is driven by increase in headcount. If this is all part of investing to implement the growth strategy then fine but more could have been said to explain.

The share price in the longer term will be driven by achieving extra functionality/market with the Comapi acquisition and continuing the growth in US and Asia.

[tightfist] 27/2/2018 11:44

janeann,I suspect that Glaws is on the correct thread, the 2019 average eps is spot-on the Stockopedia numbers from yesterday?Cheers, tightfist

[janeann] 27/2/2018 11:31

wrong thread

[glaws2] 27/2/2018 11:22

2018 forecasts

Finncap : Rev 45.2, PBT 10.1, EPS 3.8
Singer : 45.1, 10.4, 3.0

2019

Finncap : 58.2, 13.1, 3.8
Singer : 57.8, 13.3, 3.9

[tsmith2] 27/2/2018 11:12

Any forecasts?

[phillis] 27/2/2018 10:44

2nd half has full contribution from Comapi

[tsmith2] 27/2/2018 10:34

decent company but PE too high. Just the wrong price. On watch list

[alphabeta4] 27/2/2018 09:43

Same here - I sold 94p & 91p - there's a worrying trend if you look at the cost of sales margin - 13% H1 2016-17, 14.7% H2 2016-17, 16.8% H1 2017-18 and as commented on this isn't properly addressed in the statement. I'm guessing it's the move to resellers who want their cut, I can understand why they're doing it but it looks like the new normal may be 17-20% revenue growth but with less if it feeding through to eps. This IMHO makes the rating look stretched and it's then relying on an excellent Compari performance to make up the slack.

[wjccghcc] 27/2/2018 09:07

I took some off the table first thing at 94p. The EBITDA growth was anaemic and the warning of protracted sales cycles ahead of the GDPR introduction in May raises the risk level for H2. On a PE of 30, there's not a lot of room for disappointment. Hopefully H2 will be fine and I'll end up buying back in at a higher price....

[jgoold] 27/2/2018 08:46

These results are as per the trading statement in late Jan. The only issue not highlighted in Jan was the rise in EBITDA of 8% which is disappointing with revenue growth of 25%. Looking at the P/L the gross margin fell from 87% to 83% - still very good margins but a noticeable drop, and, not addressed in the statements.

[shanklin] 27/2/2018 08:35

I think the question should be... why the recent recovery after the drop caused by the TS?

[jgoold] 27/2/2018 08:31

Never pays to break your rules!!!!

[2vdm] 27/2/2018 08:29

It will come back, just the "buy on rumour and sell on fact" traders. The results are very good. The Comapi integration seems to be progressing very well and will soon be repaying its cost. There is a team of 28 in the US with t/o increasing substantially. All bodes well imo.

[dannyt90] 27/2/2018 08:18

Why the drop? Not good as expected?

[jgoold] 26/2/2018 07:45

I would normally sell or trim before results but after a good solid trading update only a month ago I'll hold.