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...I've gone for it...feet first (fingers crossed) ...hope they receive wot they are owed lol
Extracts ... "pleased to announce" ... 20p placing ... "delighted" ... "successful fundraising" * My comments ... "Awfull" ... "distressing" ... "This placing is a form of business failure" * 20.297 million shares were placed at 20p gross (18.23p net) * Reason for placing ... replacing working capital that had been mis-spent on long term capex previously! * Post placing, I think circa 56 million shares exist and I am guessing underlying EPS is running at 1.8p vs 1.7p last year and that debt per share is circa 25p and NAV is circa 76p ... pretty spurious guesswork ... could have got it very wrong? * Additional Comment ... Despite not being heavily exposed to this share, it was quite some time before I could stand the thought of considering the effects of the placing more carefully ... Getting caught on the wrong side of a placing is horrible!
Forgot to say - they did make a hash of forex and I think they might have invoiced in Rupees earlier but believe they have seen the error of their ways.
Hi there! Yes, it's public knowledge that they had issues with their accounts receivable - assuming that's what your AR meant. Indeed they have said they are putting additional focus on this area. That is why there was an issuance of share recently at 20p. That of course is factored into the sp now, so you could argue that the AR problem is well and truly factored in. If memory serves they had an order book in excess of £150M at the end of the previous financial year - more than three times annual revenue. With regard to their revenue recognition policy I should imagine they follow SSAP 9. Bearing in mind the nature of the business I would imagine that this would be the riskiest area for the audit of the financials. Clean audit report says rev rec OK. I tend to think that this sp is undervalued - but I also think to relaise its full potential it's a bottom drawer. So much potential and cannot see it dropping any further. I would advise to hold and if you have excess cash then top up. Just my opinion though! Cheers.
There is obvious potential here and whilst i have some concerns, the price has come down considerably. It is a risky investment IMO. I do find it hard to make sense of the figures, one conclusion could be they are invoicing in Rupee's, i cannot believe they would do that, but it may suggest the poor revenue increase against a backdrop of so much positive RNS news that would suggest revenues increasing substantially. If that is the case then the their Debtors becomes a big issue as they are paid slowly and this leaves a big exchange rate risk. But the frustration is that there is not enough information to say whether this is the case or not. That is why i feel the management are weak and not focused on the main issues within business but more on the soft-factors and the latest creation or promotion. I could be very wrong and this is a big growth story that is unfolding and the pieces will fall into place, and i do hope so. I am just so hard to please... I will keep watching as i do like the story unfolding and if the management and figures start to reveal themselves in a different light i will definitely look to invest. GL.......
I am invested here, and well down. I think you sum up the position very well. Looking at the cash flow I fear a very poor RR policy or worse. Everyday, I consider cashing in :(
Hi disco, Why do you think that their finances are ok. Rev 45 AR 35, cash down 3m, current borrowing up 6m, intangible assets 85m....tangible assets down, interest up 2m. If you follow the cash flow through the business they appear to be consuming it...FCF. If the AR is 35m and revenues only 45m that also may indicate that a higher % than normal will not be collected or that the business is misappropriating the figures or worse there maybe be an issue with revenue recognition. If the later is the case then profits are also likely to be overstated IMO. So they needed the injection of fresh capital and the business management have been unable to rectify these fundamental issues within the business and they come down to tight financial processes and controls that on the surface appear to be weak. I wish it appeared different but maybe i am looking at the figures in a different way to everyone else.... I would like to be convinced differently. Gl.....I do like the story, but cannot get the management and figures that surround it.
Finances say yes and have just topped up. Now 60K shares on the nose. Interestingly though I managed to buy at 16.0001p.
Lord knows what they were doing with their translations last year. But this is a sleeping giant I think. Just trying to calculate my free cash as might have a top up!
Agreed, this is one for the bottom drawer, I am sure it will double within 12 months, they have been heavily hit by currencies
Thanks! I still think it's cheap!
just over 56m shares and mc just under £10m
Before I look silly, that's what the m.cap is on my 'Stocks' app. However, on Bloomberg it's £10M. Doe anybody know the number of shares in issue?
How is the below worth a market cap of only £5.75M!!!!! This sp is cheap as chips. Financial Highlights for the nine months ended 31 December 2012: Revenue: USD 25.91 mn (2011: USD 28.64 mn) EBIDTA: USD 11.00 mn (2011: USD 11.83 mn) PAT: USD 2.58 mn (2011: USD 4.66 mn)
I would agree. I've got 50K of this little puppies at an average of 24p. I'm not bothered by the current sp one little bit. I believe this is so so cheap. Results not too far down the line now. I genuinely think anything below 35p is low, but each to their own.
Morally, I feel the placing deserves to be broken, because it was a dirty act IMO. ... I can't bring my self to sell, because the shares "may" actually be cheap? and the paranoid loon in me thinks "If I do then it will spike!!" ... GLA
...selling depressing Jolly
doesn't inspire confidence lol
.
um....or crackers!
at 16p! ...someone's nervous
Was a buy! It was I dear chums. Topping up -this price is nuts. OK the share issue was annoying but the directors lapped it up!! Got to be encouraging. Got an average of 24p now and hope to be sitting pretty soon. WIll definitely continue to average down as and when I can. GLA.
Mentions possible 10-15% of PAT dividend policy commencing after YE 31/03/14 ... Good to see them taking the trouble to talk about dividends ... Still feeling jolly pi$$y about the placing tho.
..spot on, RW ...management, management, management ...wot do I know of Tapaas? "Tapaas Chakravarti with over two decades of International Corporate Management experience has helped to shape the success story of his creation, DQ Entertainment group. Tapaas began his career with Sandoz India Limited (now Novartis, a Swiss Multinational) and later joined STP Limited, an infrastructure company. Tapaas has held senior positions in Sales and Projects at Coats of India, (a British multinational). He was Head of Special Projects for Sriram Group where he developed countrywide contract manufacturing activities. Tapaas is a science graduate with Post Graduate Qualification in Business Management backed with over 23 years of experience spanning across industries both national and multinational. Tapaas believes in individual excellence to be integrated into a well-knit teamwork and unstinted support to ethical business practices. This has lead to the creation of a large workforce in DQE, cohesively knit together with very high quality business, operational and creative leaders driving the exceptional growth of the company. He is a part of several national and international charitable organizations, which includes extensive work for orphans, AIDS effected children and education for the deprived eg. AGAPE, India, Figli Del Mondo, Italy. He is also an active member on the Board of the Indo-British Partnership and is a member of the Young Presidents Organization. He has been recently elected as a member of EMMY – The Academy of Television Arts & Sciences, Los Angles, USA. In the year 2009 he has been nominated for the ‘Ernst & Young, Entrepreneur of the year 2009 India Awards’." well, I know Shriram...excellent imv...so let's hope it's a typo!! atb