Dx (group) Share Discussion Threads

[joe say] 04/3/2015 07:11

pp - the email substitution argument is well known and in operation but is I understand happening at a lot slower pace than people imagine

After all you know what lawyers are like

[paulypilot] 04/3/2015 01:28

I think the reason these shares are falling, is that the part of the group that probably makes most of the profit is the declining DX Exchange service for solicitors, etc. It's being replaced by emails, gradually.

That's probably the reason it was floated on the stock market, as the previous owners realised that the big money maker was declining.

The divis looks superficially attractive, but are probably not sustainable, long term.

(no position)

Regards, Paul.

[speedsgh] 03/3/2015 16:26

Cuurent 83.25p offer equates to 7.2% yield for those willing to wait (went ex-div on 26/2 for 2.00p interim payment).

[m.t.glass] 03/3/2015 13:33

A new alltime low. All the gains since the December bounce now gone.

The company's own forecasts show negligible growth in turnover again for another 2 years. Though other metrics look better.

[funkmasterp12] 03/3/2015 13:24

Out with a loss. Shame, but the market clearly isn't backing it.

[spooky] 03/3/2015 07:24

I'm already out, so on that basis it sounds like this is probably the bottom :-o)

[funkmasterp12] 03/3/2015 07:20

If it breaks any lower here I'm out too.

[woodcutter] 02/3/2015 08:36

away on hols last week and sold my entire holding in batches for just below break even.

fundamentals may be solid but you can't trade against sentiment and the chart moved against me so i'm out.

woody

[speedsgh] 25/2/2015 15:41

Continues to be plenty of stock available. Wouldn't be surprised to see a disproportionate dip tomorrow once it goes ex-div.

[woodcutter] 16/2/2015 10:57

well being both a fundamentalist and a chartist i'm inclined to stay with my holding on the fundamentals, having built a decent stake now, but if the TA moves against me i'm not so inflexible that i won't reconsider.

A negative full engulfing candle and a drop through the 21 day EMA and i'd have sold this morning but it looks like the trend line is holding so it may just be a pull back on a further move up.

woody

[funkmasterp12] 16/2/2015 10:30

I'm willing to keep holding despite having an average in the 110s. I like the fact that the debt pre-IPO has been eradicated and cash is up in spite of the lower revenue.

Conservative, steady etc. And I agree Woodcutter, definitely underrated to peers.

[mrx9000] 16/2/2015 10:14

Woodcutter: I agree that in this sector DX. is a better one of the bunch. My gut feeling took me out this morning and I feel that there are better sectors to topup on. Good luck though.

[woodcutter] 16/2/2015 09:49

just some further thoughts on comparators forecast for the coming year from the digital look web site.

UKM
revenue £497m
pretax £19.6m
pretax margin 4%
eps 31.5p
per 17
yield 4%

RMG
revenue £9465m
pretax £431.4
pretax margin 4.5%
eps 32p
per 14
yield 4.7%

DX.
revenue £312m
pretax £30.3m
pretax margin 9.7%
eps 11.7
per 8.3
yield 6% (based on 1/3 in H1 @2p and 2/3 in H2 @ 4p)

granted the businesses are on differing scales and perhaps marginally differing business models. It also remains to be seen if DX. can deliver £30m pretax but on an EBITDA basis that looks achievable. It seems unjustifiable to me that it should sit at such a comaparable disadvantage to both UKM and RGM.

Expectations are for H2 to be stronger than H1 and there's further investment and rationalisation of depots to consider. Despite competitive nature of the sector DX. looks undervalued to me.

Woody

[mrx9000] 16/2/2015 09:20

I sold this morning. There are other factors I do not like the look of. I don't like the cashflow, operating margins have been reducing year on year, albeit in the last year more slowly and that dividend of 6%? is probably unsustainable. Various ratios that are not that good either.

Will keep an eye on though.

[woodcutter] 16/2/2015 09:08

There's no question it's a very competitive sector but with an expected divi of around 6p annually and the fact that DX. is trading on a per below it's peers i feel the risk reward is currently more positive than negative.

The current per is half that of other businesses in the sector, which is unreasonable imv, so there's plenty of upside given that there's also likely to be around a 6% yield.

The capitalised spend balances with the amorisation of intangibles too and i like the fact that they're writing off most of the future cap costs over a short timescale.

It's not likely to be a fast growth company but in the current economic cycle it's a pretty safe haven with good yield, and some upside share price potential, at around at least 50%.

aimho

woody

[connor23] 16/2/2015 09:05

That is fair enough. I agree or is a brutal sector, but DX are looking for their niche. I guess only time will tell whether the revenue decrease is all by design! I do need to look at the results and the cash flow statement in more detail, but I expect the divi to underpin the share price. How much room for upward movement is the question...

[mrx9000] 16/2/2015 08:53

Results are nothing to write home about in my view. Satisfactory is not my cup of tea.

"In a challenging trading environment, I am pleased to report that DX has delivered a satisfactory performance"

I was talking to someone the weekend who works in this sector. It is pretty brutal. Even with the demise of City Link.

[connor23] 16/2/2015 08:08

Nice steady update. Future progress will most likely depend on stripping out further costs from the consolidation plans management have. The divi will be the main attraction here imo. Nice to see the bal sheet starting to look more healthy as well.

[funkmasterp12] 16/2/2015 07:54

Good results. Maiden divi, EPS turnaround, drastically reduced debt and profit going the right way, offsetting the revenue reduction.

[funkmasterp12] 12/2/2015 16:23

I've seen that choppy intraday pattern a few times before, it normally signifies a bot buying or selling.

Could very well get a holdings RNS imminently.

[connor23] 12/2/2015 13:34

That Nov high about to go. I think you may be right about that seller Woodcutter : )

[wirralowl] 12/2/2015 09:47

Chart looking better by the day to back up the strong company fundamentals and lower oil price.

[funkmasterp12] 12/2/2015 08:49

Lovely! Even back at IPO price these are still fundamentally undervalued. Needs news to kickstart it but if a seller has cleared that's a big plus.

[connor23] 12/2/2015 08:34

Was pleasantly surprised myself by a tick up!

[woodcutter] 12/2/2015 08:32

has the seller cleared yesterday?

this morning share price reation suggestes they may!

woody