Dowgate Capital Share Discussion Threads

[saddembinladen] 18/9/2008 23:10

donaferentes - Goodwill is an accounting term used to reflect the portion of the market value of a business entity not directly attributable to its assets and liabilities; it normally arises only in case of an acquisition. If for example future profits could generate 3 million in the next five years, this could be added to the net worth of the company before its sell. If you took away the salaries, and other associates employee costs, if a bigger company took over then the projected profits would even be larger. Just food for thought.

The business is undervalued and probably more so to come with a falling share price.

[rawli] 18/9/2008 23:00

RNS Number : 7256D
Blue Star Capital plc
18 September 2008

BLUE STAR CAPITAL PLC

CHANGE OF ADVISER




Blue Star Capital plc is pleased to announce that it has appointed Dowgate Capital Advisers Limited as its nominated adviser and Alexander David Securities Limited as its broker with immediate effect.




Enquiries:




Blue Star Capital plc

Dr Richard Leaver, Director
020 7297 0010

Dowgate Capital Advisers Limited

James Caithie
020 7492 4777

Alexander David Securities Limited

David Scott / Bill Sharp
020 7448 9820

[serratia] 18/9/2008 16:21

Operating costs 82% of sales in 2007,98% of sales in H1 2008.No margin at all in the business,bet they pay themselves bonuses though.

[onsider] 18/9/2008 14:59

WHat happened to the big profts these guys were going to make?

[donaferentes] 18/9/2008 13:13

saddem - I see (stupid!) you were using net asset value. This does include £3,018,000 of good will which must be at least hard to value in these interesting times. Net of that the book value is £2.6m against a mid-market cap of £4.12m. Not as undervalued as all that, especially since we have reverted to loss-making status.

Maybe this stock is so small, nobody's paying it any attention until after they've sold off the bigger fish - then we'll see what they make of DGT.

Still holding, although my reward is now less than a decent on-line deposit account.

[davidosh] 18/9/2008 12:33

what big earner ? turnover and profits are going down sadly

[montyhedge] 18/9/2008 10:27

What happens when their big earner retires?

[saddembinladen] 18/9/2008 10:25

Stevie, the Interims state "Bonus provisions are proportionate to adjusted profits i.e. significantly lower this year compared to 2007."

All performance related so am not too concerned, which is one of the reasons they have lowered the divi. They need to invest and retained their staff otherwise it will affect the companies performance.

[saddembinladen] 18/9/2008 10:11

This company on paper is worth 5.6 million yet the market value is a mere 3.8 million, nearly 2 million undervalued. I wonder if another company was to buy out Dowgate how much they would be willing to pay. Add goodwill and future retainer income and I'm sure it would be considerably more than the current market value.

A shame about the reduced Divi but not all doom and gloom considering these bad bear times.

The next six months should be interesting and will continue to be an OAP on this thread.

But an interesting company surely for any larger poachers out there.


Sbl

[stevieweebie2] 18/9/2008 09:14

So
6p it is then.
ah well such is life, I am sure that they paid themselves handsomely through the difficut period.

[donaferentes] 18/9/2008 09:09

Well the results are pretty dull frankly. A neutral half year diminished by £740k investment in new London broking office (£496k in pension contribution which was reinvested by the pension fund into DGT shares - quite a neat cash-neutral solution - and £244k operating costs since inception to 30 June).

Balance sheet still strong - quick ratios etc all good.

Call me old fashioned, but why can't I reconcile loss for the year on the PL with reduction in reserves on the BS?

Shame they reduced the interim dividend, saving £80k - rather maintain the interim and buy-back less shares. Does this forebode a reduction in the final as well to 0.3p?

Almost zero reaction from the market - 30,000 sold at 9.66p this morning so far.

Any views from the OAPs on this thread?

[rawli] 17/9/2008 16:05

another 200k buyback I am guessing today

[onsider] 17/9/2008 16:02

Or they have forgotten they still own Dowgate shares.....

[donaferentes] 16/9/2008 23:14

I can wait. I have to say I am impressed with DGT's flat-line share price during this week's mayhem. Not bad for a financial stock to maintain its value amongst all this. Maybe all the shareholders are too bored to notice what's going on round them.

[onsider] 16/9/2008 20:30

Who wants to bet they leave it until the 30th then?

[blackm0nday] 15/9/2008 22:03

God what a time to announce the results,good old CFA its never failed to disapoint over all these years.
Consistency at least.

[donaferentes] 15/9/2008 21:30

. . . for the September meeting of the flat-liners society! Don't forget to wind your pace-maker this evening.

[onsider] 15/9/2008 21:27

Oooh, so it wasn't a deadline. Sorry, misread the annoucement. Thanks for the correction.

See you at 7am then...

[donaferentes] 15/9/2008 13:31

Actually the wording was "which will not be before 16 September", so could be any time between tomorrow and end of the month (when it's mandatory I believe)- not sure why all the secrecy, except to protect the buy-back price. I shall probably be at my computer at around 7.00am tomorrow just in case!

[onsider] 15/9/2008 11:11

Am I ocrrect in thinking that COP tomorrow is deadline for results to be published?

[lr4850] 12/9/2008 15:54

web-site also updated with another September transaction.

[donaferentes] 12/9/2008 07:46

Keep'em coming - not so frequent as they used to be. Results on Tuesday?

[davidosh] 12/9/2008 06:47

I have not seen this one flagged up as a new client and it is not on the website