Dotdigital Share Discussion Threads

[tole] 04/2/2022 06:11

Peel Hunt upgrades Dotdigital on price weaknessPeel Hunt has upgraded Dotdigital (DOTD) on weakness in the shares of the sports marketing platform.Analyst James Lockyer upgraded his recommendation from 'hold' to 'add' but reduced the target price from 242p to 170p on the stock, which closed down 0.4% at 144p. He noted the stock has recently derated from its highs.'We upgraded Dotdigital to "add" after the recent weakness,' he said. 'Over the medium-to-long term it is aiming for 10-15% growth, a 20-25% operating margin, and 95% net operating cash conversion.'Lockyer predicted the group would build up a 'cash pool of £64m by 2024'.'Hence, we would not be surprised if Dotdigital made some more tech intellectual property-led acquisitions following the success of the Comapi integration,' he said

[jsforum] 27/1/2022 12:56

40 million cash - we need an acquisition before we get taken out

[boadicea] 27/1/2022 12:32

It is very difficult to gauge underlying trends over the past 2 years due to covid and the implied reduction in clients noted above (thank you for spotting that) may in part be a reflection on the number that have ceased trading rather than defected to the opposition.

Reading back on this board to last Autumn, there seems to have been an awareness that the company was on a rating which assumed a phenominal growth rate that was unlikley to be consistently maintained for long even in benign circumstances.
The price/revenue multiple is still high in comparison to many of its peers and is a reflection of its generous margins.

A positive feature of the present update is the excellent cash flow and balance which has increased more in the past six moths than in the whole of the previous full year. Again the operating environment has been unusual and comparisons thereby blurred. However, it does put the company in a strong postion to make bolt-on acquisitions if a favourable opportunity should appear.

In summary, the performance is good but not truly exceptional against a rating that is still high. Strategic position, especially cash, is strong as is the track record so it is reasonable to expect a good relative business performance in its sector. This does not necessarily translate to the share price performance which, on balance imo, is likely to be at best hesitant so that it trades sideways from a slightly lower level for some time ahead.

There is always the possibility of corporate action to raise interest levels.

[2vdm] 27/1/2022 11:38

Thanks OzzieTom. Much appreciated

[ozzietom] 27/1/2022 10:35

I am a long term holder, but was a little disappointed with todays results.
While revenue grew by 10%, this is a much slower rate of growth than previously and also for what the shares are priced for. Also, although they say they will meet full year expectations, it means H2 revenue will need to be 34.7 million, which may be a stretch. Also, ARPC has increased 19% which is good, but as overall revenue is up only 10%, this must mean there has been a fall in the number of customers. Dividing the revenue for last year (28.2) by ARPU gives 23,578 customers. This years revenue of 30.9 divided by ARPU of 1422 implies 21,729 customers, so a Nett loss of 1849 customers.
I think it is a decent company with a product which seems to be well regarded, but I think it may be overpriced for the level of growth going forward.

[2vdm] 27/1/2022 09:17

Way oversold this a.m. and I'm not sure why other than market sentiment. I'm a great fan of DOTD and in particular its mngt, so have topped up twice today. I would be interested to hear other's views.

[johnwise] 27/1/2022 07:19

dotDigital Group plc Trading Update and Notice of Half Year Resul

27/01/2022 7:00am

RNS Number : 8262Z

[persian king] 30/11/2021 18:03

On a red day!!! Any indication of why the last two days have been blue? Apart from over selling

[sphere25] 30/11/2021 15:31

Job done.

Bouncing beautifully.

Currently at 196.6p.

Lob to your heart's content whenever you want :-)

All imo
DYOR

[sphere25] 29/11/2021 09:30

Watched it, tracked it...bought it

Time for the oversold technical bounce?

All imo
DYOR

[sphere25] 26/11/2021 14:39

Interesting.

It has gone positive on a notable selling day out there. Bulls are trying to take control of the key 174p and 175p levels.


All imo
DYOR

[sphere25] 25/11/2021 09:29

Guess that is one way to correct an excitable multiple.

Clearly there has been alot of this exuberant behaviour about this year so surely it cannot be a surprise to see more selling out there and these types of rating's coming back down to Earth.

There were so many of these. You'd look at reports in the morning and think about how steep the multiple's were and take a fright at them. Had to wait for some real clobbering's of late to take an initial bite.

Watching this one for a possible bounce, but it needs a BIG clearout of sellers and that hasn't been happening of late. Seen heavy buying in SUP recently and it hasn't moved. I was watching JSG yesterday and even though you get buyers come in for sizable 200k blocks, sellers just batted them away to prevent any bounce.

So what do we have here:

- Intraday price flat in a firm wider downtrend
- Seller in size sat at 174p closing off any move higher with 175p also providing resistance to the upside.
- Pinged off 170p yesterday so a tight range.

What normally happens (not saying it happens here) in these down moves is that the sellers continue to close off 174p and 175p. Sellers then take control of price points slightly under, and then the market realises the sellers are too overwhelming, and sell through that low yesterday of 170p to continue the downtrend.

Will it happen here?

170p is actually support from earlier in the year so it has already crashed to a key support level so it will be interesting to see if it can hold that level to form a bottom here. The price fell on heavy selling so it's going to need some standout exchanges to peek the interest for a possible bounce.

It doesn't look enticing at the moment, book is stacked like a brick wall on the offer, but IF someone gets the oversized mop out, it could all change.

All imo
DYOR

[epo4eva] 22/11/2021 08:18

No thank you. Growth 23% up and profits up. Very happy.

[epo4eva] 22/11/2021 07:29

Excellent growth. A record amount of cash in the bank. Recurring revenues. Very happy.

[apad] 20/11/2021 14:09

I think the DOTD presentation is smoke and mirrors.
They talk about new accounting classifications - Cost of Sales including Tech Costs that used to be in Admin and a couple of other reclassifications.
BUT. Cost of Sales is up 166% and Admin up 12%.
They talk about SMS messaging having a lower margin than email, but the SMS is on top of the email.
They blither on about closing down a subsidiary but its activities are covered by their main platform.
Also talk of historic lumpiness.
I suspect they are losing pricing power to competition.
Their revenue growth is 23% which is above their target of 15% per annum but adjusted EBITDA and Operating Profit is in low single figures.
apad

[2vdm] 19/11/2021 16:03

An excellent presentation this morning as usual by Patel and Amin the CFO on Investor Meet Company. I can't see it has been posted on DOTD's web site yet, but there is a phone version available on Tel: [phone]
ID: 719191# Passcode: 4498# Very focused on their mission.

Simply Wall St have a tgt of £2.62

hxxps://simplywall.st/stocks/gb/software/aim-dotd/dotdigital-group-shares#share-price-and-news%3Futm_source%3Dbraze%26utm_medium%3Demail%26utm_campaign%3DCritical%20Updates%3A%20Emails%26utm_content%3DVariant%201

[tole] 17/11/2021 17:10

https://www.fool.co.uk/2021/11/17/is-this-the-best-tech-stock-to-buy-for-explosive-returns-in-2022-and-beyond/

[nhb001] 17/11/2021 16:01

I've held these from 34p in 2015. These episodes are not unknown. In retrospect they always turn out to be huge buying opportunities. If these go sub £1 as has been suggested I'll be remortgaging my home to top up.

[2vdm] 17/11/2021 15:39

Nothing imo. Just oversold on the results. This is a well-managed company in the right space, no borrowings and a £40m cash balance (Simply Wall Street analysis). I've just bought another £3ks worth. Good luck to other LTHs

[hopefuldave] 16/11/2021 17:14

Oh my god, what have they done to deserve such a drop??

[shouldhavesold] 16/11/2021 16:02

3.5p earnings, come on! You can do the maths
This is going sub £1

[boadicea] 16/11/2021 11:00

I sold enough (too early!) in May to recover my initial outlay but could not understand the subsequent climb to ~290p at end of August which seemed clearly over-rated (e.g: price/revenue rating of ~20 historic or ~15 on forecast) and required a magical performance to justify it - 'shouldhavesold'- yes!.
In the event, the results are on forecast and very good but were bound to disappoint exaggerated expectations.

There is nothing wrong with the company and I will retain my reduced holding. It looks adequately valued to me in the low 200's and on the basis that the market likely over-corrects, techtrader's target could be right, giving me a chance to top up again.

Meanwhile there are other companies with similar opportunities on much lower ratings, because of past difficulties or a short track record, that offer the possibilty of a sharp uprating with less downside risk.

[techtrader5] 16/11/2021 08:57

Cracking H&S pattern, target price 170

[tomps2] 16/11/2021 08:03

dotdigital Group (DOTD) full year 2021 results interview

DOTD CEO, Milan Patel and CFO Paraag Amin give an overview of results for the full year ended 30th June 2021.

Watch the video here:

Or listen to the podcast here:

[shouldhavesold] 16/11/2021 07:44

Liontrust knew these results weren’t going to be that great
Wow, So overvalued this now