Dotdigital Share Discussion Threads

[srichardson8] 09/3/2022 12:23

Albert (aka Abe, my uncle) and Arthur (aka Art, my Dad)I tend to agree the valuation looks decent at last and this is worth further checking for a m-t possible investment. I did a quick rating comparison with D4T4,Sopheon, Zoo, Access Intell and on most counts looks good. I suppose on the longer view it entireley depends on whether this is just a blip or something more fundamental with the attractiveness of the programmes. But worth some time I would have thought.

[2vdm] 09/3/2022 07:49

Good to see Mrs P buying 37K shares. That makes 200K approx by board members in the last 2 days. Shows confidence.

[albert arthur] 09/3/2022 07:44

Looks good here, fundamentals,price and the chart.

[mister md] 09/3/2022 07:36

and another. Very quiet on here.

[mister md] 08/3/2022 07:08

RNS - a few director buys

[w1lbur01] 07/3/2022 13:21

Likewise had a few at 54

[mister md] 07/3/2022 13:19

ok timing, for now ... ;-)

[mister md] 07/3/2022 11:20

I'm in at just under 53p

[bulltradept] 07/3/2022 11:18

AIM stock. Meh.

[w1lbur01] 07/3/2022 10:36

Starting to look interesting

[2vdm] 05/3/2022 21:47

It's way oversold imo. I've been buying more. Simply Wall St have this at £1.81 for fair value. I agree it would be good to see the CEO buying to show confidence, but remember that insiders already own 10.5% of the company, so not insignificant. It's profitable, debt free and has been punished like so many in the tech sector, but even if it's growth slows, it remains profitable and is now trading on a much reduced PE. I'm holding for the long term and my worry, as has been referred to above, is that it could now be a target for a buy out. Just my view.

[value viper] 04/3/2022 21:56

suspect likely oversold now in markets full of fear notwithstanding forward trading comments - approx 10p (?) net cash per share - most unfortunate timing of course 2 directors moving on ? Chair is retiring though - replacements coming. growth to slow OK but still growth - must see at least CEO buying shares soon or that wouldn't be too clever - decent current insti holders also - be interesting to see if they add / reduce possibly.

[timmy40] 03/3/2022 18:34

It is all about the future, and they confirmed in the statement that new orders/demand had softened, at a time when they were priced at 40x PE, I.e. perfection, so the valuation has to come lower to reflect the new reality, growth businesses now command a lower valuation in a higher interest rate/inflation world.

[sphere25] 03/3/2022 12:13

Finncap cut forecasts:

"Adjust FY22 and FY23 revenue -3% and -10% respectively; EBITDA unchanged; adj EBIT -4% and -7%; and adj dil EPS -8% in both years"

Traded this short term before but I was regularly flabbergasted at the multiples of these shares, and found it hard to find value last year, as the market went on an all out hell for leather extravaganza.

The reality check now is that if any company on a rich multiple, priced for spectacular growth and a bonanza party disappoints in any way it gets annihilated.

There are alot of examples out there but DOTD follows ESYS as a recent one. Something like PODP got sold on the news and even something on a lower multiple like RCH, which only cut forecasts 6% to 34.2p got smashed too.

You simply cannot disappoint. You have to almost beat forecasts if you're on a big multiple to stand a chance of not getting clobbered in this market. The FED is losing credibility as the market tries to work through the Russian malaise. The overall reality now is that we are all guessing as to how far growth is going to contract in the world and whether a recession will follow.

The experts come on business channels and make their calls, but judging by how wrong most have been, it is all up in the air.

Back to DOTD

FinnCap forecast:
2022 3.8 EPS
2023 4.0 EPS

They also mention that DOTD is one of few independents up for grabs so a takeover cannot be ruled out.

There is an iceberg that has been mopping up at 77p but in a very ugly intraday downtrend. I can see a few orders at 76p and 77p trying to halt the decline but ideally I want to see someone stepping in big to clearout sellers or whopping big director buying (post results season) to move away from very nimble trading - this applies to most out there now.

Longer term folk will clearly approach things differently and might average in on further weakness. Possibly another warning to come judging by this update?

Market cap at 78p is £232m, EV of £192m vs EBITDA forecasts of £20.6m and £21.9m for respective 2022 and 2023.

So barring some major catastrophe going forward, it isn't bonkers expensive anymore so maybe someone will have a look in soon.

All imo
DYOR

[swiss paul] 03/3/2022 11:08

not today - WTF happened on this?

[mister md] 03/3/2022 10:53

had this on my watchlist for a while - at what price is this worth a punt ?

[dave4545] 03/3/2022 10:29

750 mil market cap last summer

incredible

[2vdm] 03/3/2022 09:38

Anyone understand why this is so far down. I thought the results looked OK. Have I missed anything critical to justify this drop?

[johnwise] 03/3/2022 08:41

Bought 98pence 21/1/2020 Sold £1.68 on trading update 27/1/22

[bulltradept] 03/3/2022 08:28

Shagged now!

[km18] 16/2/2022 17:54

...from last year...

Company overview:Dotdigital is a SAAS and managed services provider to digital marketing professionals, offering omni-channel marketing automation platform with variety of tools for campaign creation, management, and execution. Founded in 1999, over the years the company has been recognised by different organisations for its products development, ability to inspire, and user satisfaction. Through its 12 offices worldwide the company has generated 21% CAGR and 44%  CAGR in revenue and earnings-per-share over the past 10 years. Their organic growth strategy is balanced by acquisitions for complementary synergies and customer base/talent acquisition.
Continuous momentum, strong cash balance and robust growth during FY21 led to total revenue run rate above expectations. The strong performance was evidenced by 588% Engagement Cloud Revenue growth and healthy balance sheet in the H1 2021 presentation. Management has taken the company on the correct path by building on the foundations of company’s international hubs, product enhancement, and adaptation towards changing consumer behaviour....from WealthOracleAM

[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.