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Think I'll pick-up some of these around the 75p. Really not worth anymore than that. Once the management have stopped playing 'the Hokey-Cokey', I think the shares may rise again. 12 to 18 months. Just not worth (risk) buying right now.
At last: some director/ senior management buying.
It sends the right message, and is a start to helping to improve sentiment towards the stock.
Point taken.
The half-on-half revenue (ie H1 '22 vs H2 '21) rise of just 3pc, which is itself half the 6pc rise for the previous half, (ie H2 '21 v h1 '21) makes clear the loss of momentum, irrespective of the explanation that it is mostly low margin SMS revenue that has disappeared. Along with anemic revenue growth, H2 of '22 will be hit with higher costs from new hires (higher wages) coupled with renewed marketing spend.
The briefing did make clear DOTD was hit by a talent raid in the U.S. (private equity got the cheque book out), that share options for staff is on the agenda, with a question re share buy-backs batted away by lumped it in with the usual debate over competing uses of capital - vis funding growth/M&A and buy-backs. Anyway, any decision must await the hiring, and onboarding of the new CFO, which is at the very least several months away.
Given the shares are trading at around 12x (annualised) earnings, DOTD is almost trading at cyclical value stock levels.
But without the board and senior management going into the market, it is impossible to expect a rebound anytime soon.
burn so badly unfortunately :) the bad news has come and gone. I hope everyone has looked into DOT D future. absolute steal at 50 - 60p
Accountants don't necessarily know how to run a business!
I agree that their CFO leaving looks bad based on the current SP action but we must also not forget that their CEO used to be their CFO, so the company’s current woes must be laid at his feet IMO.
With an accountant at the helm of the business it is very disappointing to see this massive downfall in the SP.
I've just bought in. Am I the only one? Looks like it... lol
What a mess: in one fell swoop DOTD is now trading ex-growth. H1 revenue growth of plus 10pc to fade H2; H1 operating margin of 29pct to drop to circa 20pc in H2. U.S. revenue growth is minimal, even with strong market dynamics. It took a while for the company to admit that margins had been slashed thanks to the surge in SMS demand and, now that ship, too, has gone out, leading to faltering revenues. With Stg20m on the balance sheet (20pc of the company's worth) a buy-back should be on the agenda - but only after management puts some of their own money on the table and buy some shares, to signal their faith in the company. If not, why should anyone else buy? A fleeing CFO is never a good sign.
@Adrianz. Yeah, of course. It's so good to see your shares half in a day. Isn't it? I left at £1.47 because of the unusual writing on the wall. Nothing to do with shorting, or a switch from tech/growth stocks either. There's something very suspicious about the way this company is being run. I wouldn't buy them at any price. Enjoy your loses:-)
Thanks Velo. I was looking in the RNS's but just saw it in the news. Will try to catch the InvestorMeetCompany presentation tomorrow. Always appreciate replies so thanks again.
What happened? A Profit Warning; issued this morning - that's what happened!
Possibly the worst time ever, to issue a profit warning in the face of the Russia influence hanging over everything.
A Profit Warning means the SP will be toxic for the next 12 months. But usually profit warning stocks recover in the 2nd year after the warning. Those with strong stomachs can top-up on the bottoms. But the word most usually applied to the SP in situations like this is "unreliable" for the next 12 months.
It does not mean the stock is going to the wall! Not at all.
I'll be watching during the next 12 months as no one will ever correctly call the bottom in that time, including myself. Best opportunity will be a year's time from now. It won't be a linear recovery.
Then there's current international carry-on with markets to factor in but that's the same for all stocks.
Check out this morning's trading update or click the news update button above for the precise sentence in the trading update that did the damage. If still unsure I might post further later tonight. Meanwhile I want to find out what started this rot from last summer.
This is one of my long term watchlist so not holding any stock.
Might return later but first what big event fked the SP up, from circa last summer that's only strengthened the bearish retrace from then until now?
exactly - suggests a problem other than the upfront numbers
This has gone from one of my star picks to where it is today. Motley highly recomending it just a couple of weeks ago lol https://www.fool.co.uk/2022/02/11/heres-1-ftse-tech-stock-to-snap-up-before-soars/
Im not in, but are many sinking ships profitable debt free and with cash in the bank?
Smartalec1, I was hoping for 90p but this is way better.
will continue the drop - has been long and steady.
People leaving the sinking ship
Okay - they've got until 4pm tomorrow when they have the investor call to get their story straight. The resignation of the non exec director today due to health reasons. The finance director going last week. Explain please - the market is clearly spooked.
The BOD should make a statement. First CFO goes now Chairman. Coincidence?
Why is this happening?
There is no news today.
@Adrianz. Boy, you must luuuurve these penny shares now.??????
slight blip today but this one continues to go downhill
I think this is a decent company but got caught up in the COVID tech hype. It's top line doesn't grow fast enough to warrant a high PE ratio.
I'd love to see them deploy some of the 40 million to really get things moving. Until then, it's a steady, predictable company which would be great to pick up at a cheaper valuation (sub £1 for me.)
lol, rights issue when they have £40m cash.
I can see from various BBs that there is concerted effort to short this.
Let it fall I say, I'm ready to take advantage.
Cash in bank up to £40m
The reason it's falling is people like you panicking Alec.
Definitely NOT just 'current market conditions against tech shares'. If you recall, this share fell some 14% after the last results were announced a couple of months back.......and just hasn't stopped falling! Tech is only small factor effecting this share price. I hope I don't whiff a rights issue, or worse....a whiff of scandal! One for the very brave this. If I ever manage to break even, I'll be as far away from this company as I can. Share price is actually down 15.25% realtime. GLA