As predicted last week after some worrying falls in "DEBT FREE DIRECT" it appears it was just nervous investors banking profits,Indeed they were right to do so in light of news on the expansion on training new staff ultimately having effects on profits. Its just the way the system works. Naturally, Investors are twitchy when results are due anyway. It only takes a few heavy investors to SELL in order to get the ball rolling down hill, as everyone panicks purely on those basis and dont have any hard evidence to back it up otherwise,,,,unless your priveliged that is. The recruitment drive now in place at "DEBT FREE" is absolutely essential. "OH MY GOD A DROP IN PROFITS, LETS SELL" is the attitude of most. Take a closer look. A drop in profits in this case is a good thing as the money is being well spent. "Why is this" Because "DEBT FREE DIRECT" just cannot cope with the number of calls that are now flooding in with people who are heavily in Debt. Just this week I have watched 3 headline news on tv on the continuing burden of DEBT troubled Britain estimated at well over a trillion as you Know doubt Know. The recruitment drive is very, very good news in my books that tells me that BUSINESS IS BOOMING at Debt Free Direct. albeit having a temorary hit hit on profits. The Debt/quity ratio for this company stands at just 1.17% now is that good or what.

Last week as everyone was pulling out,I predicted the share price will bounce back to 1.50 + this week .At the time of writing the share price on Friday 13.00, stands at 140.50 from last weeks lows of 1.29. Now even Nostradamus would'nt have been this close.

The Sentiment for this company is still very high which explains the share price movement moving North once again. It will continue to do so for a long time as the real effects of the Debt in the Uk hasnt even surfaced yet.

With only 30.950.000 shares in issue , they are likely to get gobbled up in no time as more and more will BUY.

Or Dosh Free Direct LOL 8:)

Saw this on the Self-Trade news round up today

City watchdog the FSA will today launch its first investigation into the consumer credit market as part of a crackdown on loan and mortgage companies that use daytime television advertising to target vulnerable consumers, says the Times.

Debt consolidation companies, which entice borrowers into amalgamating store and credit card debt into a loan secured on their property, and providers of equity release schemes for the elderly top a Financial Services Authority hit list of firms suspected of mis-selling.

Is our company affected by this do you reckon? They do use debt consolidation as one solution to their best advice approach - is it against property or unsecured, generally?

If it was a concern, I think we'd have seen it reflected in the SP today already.

SD

stockdog, I don't think DFD will be affected by this. By all accounts they are a shining new light in what to date has been a very murky underworld of taking consumers' money. They have been quoted in all sorts of official studies into the growing debt problem so really should be squeaky-clean.

Thanks for the reassurance queen1 - my view too. And every day the statistics seem to point to more business for them.

lol

Defender of Faith Dog

Splendid stockdog - Definately Funny Ditties...

DEBT FREE DIRECT seems to be doing extremely well this week. All this on no news. So whats the news.

Exactly my question Scenicroute.

Are we heading for a TA prior to April 30th year end with SP anticpating the enormous returns on all those extra staff they recruited - or is it a takeover rumour?

Mind you, on fundamentals it's worth this price - looking at the consensus forecasts:-

EPS P/E PEG EPS Growth Dividend Dividend Yield

30-04-2005 4.79p 31.19 0.01 +2,182.54% n/a 0.00%
30-04-2006 10.08p 14.83 0.13 +110.36% 2.50p 1.76%
30-04-2007 16.54p 9.04 0.14 +64.03% 4.00p 2.82%

Look at the nicely declining forward PE values, rising dividend and especially the PEG (PE divided by EPS Growth in %age terms - par could be somewhere 0.5-1 for a basic growth stock, the lower the better value).

Alternatively, perhaps we are now free of the recent threat from government committees, or perhaps institutions now see we have moved firmly into 50m market cap territory which makes them eligible for some of their funds, although I see no large trades which would indicate they are buying yet.

Looking for a recent broker's report, I came upon the Durlacher and Teather & Greenwoods January notes on this site - http://www.debtfreedirect.co.uk/invinfo.php - worth a re-read to underpin ones confidence in the future of this stock. But nothing more recent.

Anyway, what do I know, apart from the warm fuzzy feeling induced by being 73% up on my holding.

SD

Big Question ?

Is this stock going to breakthrough the 1.60 resistance mark tommorrow 04/03/05 (Friday).

Come on baby you can do it, you deserve it!!!

I'll lay money (some!) that the mid-price will breach 160p tomorrow, since the MM's marked the offer price 1p higher on close of business to protect against cheap buyers (I always assume) but the bid stayed at its highest level of the day.

Whether it sticks, I can't tell.

SD

You were right.Might pause before another move up.Nice chart and break out.

Hello hobleg!

Strictly it has broken above the 158p last high (so I was there already last night), but I had not thought of that as a particular resistance level, since it has not approached it and fallen back any more than the once. It does now look set to move fully into the next trading range 155-175(?) firmly supported by the 142p placing price last month.

Let's see if they can put their new capital to work on marketing, growth and acquisition by the time the prelims are announced sometime in Jun/Jul. Before then I would also expect a TA around the end of year 30th April which will hopefully show further advances on the January 800k turnover.

It remains a brilliantly simple growth share. I hope "clever" acquisitions do not dilute this potential.

SD

Racing away today - Hobleg was on the money with the break out.

Any particular reason why this is in the spotlight?

SD

As much as I would like this to simply be unsubstantiated Tory propaganda, it looks good for dfd:
"UK personal debt levels are a "time bomb" that pose a threat to millions of households, a report commissioned by the Conservative Party has found."
http://news.bbc.co.uk/1/hi/business/4366225.stm

tau - I've seen other reports saying that with househoolds borrowed up to the hilt, only a relatively minor hike in interest rates (which, if pushed, I expect to go to 5.25% within 6 months) will put a fair %age of strapped families in real problems. It is a cruel irony of the credit society that those who are least able to deal with adversity get sucked into more debt problems than those better able to cope.

The increase in personal bankruptcies and people using IVA has already started if you read DFD's reports - IVA case-run annual rates have risen from 1320 for 6 months to October last year to 1764 in Decemnber to 2400 in January. With respective monthly turnover rising from 520,000 to 640,000 to 800,000. This massif increase is only the start of the problem when rates start to notch up. Besides which it is so easy and painless to declare bankruptcy, now that you are only sent to financial Coventry for 1 year instead of the 3 years it used to be. The sheer relief of handing back the keys is hard to resist for many people.

I have no idea how it will grow, but the 200 per month DFD are handling could easily rise to 500 and still not include anyone you know - it's such a tiny fraction of the population. That would equate to 24 million p.a. turnover!!

SD

What the hell happened to DFD today?

same as everywhere ekse - a mark down by MM's against all those closing positions before end of quarter/tax year.

SD

I hope that's all it is.