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Dowgate Capital - Capitalising on the booming AIM market (DGT)
overgrowth
- 09 Feb 2005 20:52
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Dowgate Capital (DGT) are sitting in the middle of a goldmine! This company through their sole trading arm City Financial Associates are looking to take full advantage of the "booming" AIM market this year. Dowgate provide NOMAD (NOMinated ADvisor) services to AIM companies and also have full Corporate Broker status which means that they can fund placements on behalf of the companies they represent. |
 Website: www.cityfin.co.uk |
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On first sight, the fact that Dowgate exist in the often veiled financial services sector makes you think twice about investing in company such as this because it would be impossible to understand what they were doing - however, think again! DGT bring new companies to the AIM (Alternative Investment Market). For each new company "floated" on AIM, they take arrangement fees when acting as NOMAD. After the company is launched then for a nice steady earner DGT get another healthy chunk of cash every year for looking after them (note that all AIM companies must have a nominated adviser - thereby securing a ready source of recurring income). Because DGT also act as a Corporate broker they can get a very healthy percentage for arranging placement of shares with insititutions before a new company floats. In addition, because placements come outside the sphere of yearly NOMAD work, they can also gain healthy percentages of placements which companies may need to make throughout the year when they need a quick injection of cash to speed growth. Current NOMADships: 28 companies represented (gives recurring income of approx 480,000 per year) Current on-going Brokerage agreements: 19 companies (income depends on placements) For flotations, depending on the size of a company, fees charged will be anything from 50,000 to 100,000+ For placements (the real earner), DGT get anything from 3% to around 12% of the TOTAL AMOUNT RAISED - For example a new company raising 3M though a placement will earn DGT anything from 90,000 to 360,000 ! These figures are indicative as actual deals all differ due to circumstances and DGT sometimes take payment in shares - they still have a tasty chunk of Setstone shares and when this Russian exploration company comes back to AIM, predictions are that the share price will rocket. Note that the amount that this little company can earn in fees is huge and every new deal that comes through we know will contribute another healthy chunk into the bottom line. The good news with every new floatation means that it's another chunk of recurring revenue which could go on for years, with DGT having to do very little. New clients gained in 2005 are: Mediazest (NOMAD & broker) Elite Strategies (NOMAD) Process Handling (NOMAD) Poland Investment Fund (NOMAD) Nanotech Energy (NOMAD & broker) Archimedia Ventures (NOMAD & broker) Red Leopard Holdings (NOMAD) Alba Mineral Resources (NOMAD & broker) Intandem Films (NOMAD & broker) Motive Television (NOMAD) IncaGold (NOMAD) Sportswinbet (NOMAD & Broker) Infoscreen Networks (NOMAD & Broker) Mark Kingsley (NOMAD & Broker) Croatia Ventures (NOMAD & Broker) Pantheon Leisure (NOMAD) Firenze Ventures (Ofex Advisor) FlightStore Group (NOMAD & Broker) Euro Capital Projects (NOMAD) Pearl Street Holdings (NOMAD) Worldwide Natural Resources (Ofex Advisor) Dovedale Ventures (Ofex Advisor) Other 2005 work completed:Neptune-Calculus VCT offer for subs of up to 12 million Advisory work for TGM on London Bus disposal for 20.4M Advisory work for Creightons on property disposal Advisory work for Hampton Trust on company restructuring Advisory work for Interbulk Investments on acquisition of Inbulk Advisory work for Fundamental-e Investments on two disposals Advisory work for Designer Vision re: Design Rights against Centurion Electronics Click Here for fundamentals and profit projections. |
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stockdog
- 09 Aug 2005 08:34
- 1305 of 2787
Curious mark down on zero volume so far - MMs trying to stimulate trade??
sd
Paulo2
- 09 Aug 2005 08:37
- 1306 of 2787
EWRobson
- 09 Aug 2005 12:11
- 1307 of 2787
Markus. If the SEO CFD open position is positive, lets say 2500, and I feel comfortable with the sp, I can cash in 2000, say, transfer to the broker and pick up the best part of 300K DGT shares. Only risk is that SEO price eases, I get a margin call and have to close an SEO position. But that's the name of the game. I'm waiting for another 0.5p on the SEO sp.
Eric
corehard - 09 Aug 2005 15:32 - 1308 of 2787
overgrowth
- 09 Aug 2005 18:03
- 1309 of 2787
My view is that very few Shares readers are going to speculate on sub 1p shares anyway and those that do, you're likely to find here or on one of the other BBs.
Of course, if Shares were to make DGT a "Play of the Week" (which is possible after the interim results are known), then we would see a huge flurry of buyers that Thursday.
markusantonius
- 09 Aug 2005 22:36
- 1310 of 2787
butane
- 10 Aug 2005 15:39
- 1311 of 2787
Telephone Maintenance Group PLC
10 August 2005
TELEPHONE MAINTENANCE GROUP PLC
Telephone Maintenance Group Plc, the specialist telephone maintenance supplier
for business users, is pleased to announce the appointment, with immediate
effect, of Rowan Dartington & Co. Limited as nominated adviser and broker.
markusantonius
- 11 Aug 2005 00:50
- 1312 of 2787
ptholden
- 11 Aug 2005 08:49
- 1313 of 2787
I think it is simply that following the recent selling pressure, the MMs had accumulated a small overhang and therefore the price won't move until these shares have been shifted. Judging by the on line limits today, those shares have gone and any buying today should see a good rise. Fingers crossed!!
pth
stockdog
- 11 Aug 2005 09:15
- 1314 of 2787
After nearly 25% of H2 we have earned (on a time allocated basis) approximately 14% of H2 targets from my model which are not onerous. Plus we just lost 5,625 retainer for the 4th quarter of TMG switching to Rowan Dartington.
Are we losing momentum on the trading front?
From the chart we could be said to be in a descending triangle (bearish) commencing from the mid-July high of 82.5p with a horizontal support line at 70p. Were the SP to break south of this support, we could see a retracement all the way down to 57.5p (the height of the current triangle).
Whilst not being an alarmist by nature and, as many of you will know, a keen supporter of DGT, it may be as well to be aware of any blindness in our analysis caused by recent euphoria.
Any comments, please.
sd
Paulo2
- 11 Aug 2005 09:46
- 1315 of 2787
But I'll be interested to see how quickly the momentum builds up again from September onwards. Will be keeping two well-trained eyes on it.
Paulo2
- 11 Aug 2005 10:04
- 1316 of 2787
Hopefully one of you guys will be able to help:
1) Nominated Adviser - Annual recurring revenue fees of 15,000
2) Brokerage Fees - Annual recurring revenue fees of 5,000
Forgive my ignorance, but if these are annual fees, are they guaranteed to be mentioned in the interims? Or will we have to wait until the FY results to see them on the bottom line?
overgrowth
- 11 Aug 2005 10:07
- 1317 of 2787
See the link to the fundamental analysis at the top of this header.
Paulo2
- 11 Aug 2005 10:14
- 1318 of 2787
It's amazing how the nerves start to jangle when we're so close!
ptholden
- 11 Aug 2005 11:46
- 1319 of 2787
pth
The Company completed a successful placing of 10,265,147 ordinary shares on 15
July 2004. The gross proceeds of the placing were 5.5 million and the ordinary
shares were admitted to trading on AIM on 15 July 2004.
As stated in the AIM admission document, the Board believes that potential
opportunities lie in the natural resources sector. When the Company announced
its interim results on 10 December 2004 it announced it had identified a
potential acquisition opportunity within the oil sector and that heads of terms
had been entered into. Discussions between the parties have been ongoing for
some months and have taken longer than anticipated. As a consequence of these
discussions certain matters have come to light and it has been necessary to
re-evaluate certain elements of the proposal. The parties have not been able to
reach agreement on revised terms to date and the Board are, therefore, uncertain
as to whether agreement with the seller can still be reached and will make a
further announcement when the position is clearer.
andysmith
- 11 Aug 2005 13:22
- 1320 of 2787
Is H1 already in the sp and any reduction for H2 in forecasts will see sp drop?
Always nervous in run up to results.
overgrowth
- 11 Aug 2005 13:35
- 1321 of 2787
There is a "hard core" of DGT retail investors, both here and on advfn, and if they're all thinking like me, they will have stacks of DGT shares already (hence won't want to buy any more long term yet) and are reluctant to take out T+ trades (short term punts) until the tasty profits are revealed.
There's the odd trader who has shown a bit of interest in DGT, though because the the chart is uninspiring at present there is no pre-results extra buying force fuelled by traders (which is a good thing because it avoids the "spike" syndrome).
IMHO The current price has built in an expectation of profit to be around 250K, hence any more than that and up we go!
If our carefully scripted estimates turn out to be accurate i.e. profits of 500K-600K then we're going to be experiencing a massive bounce in price close to 2p by the time this month is out.
ptholden
- 11 Aug 2005 14:09
- 1322 of 2787
I must admit to feeling that we would have had an increase prior to the results publication and something in the region of 30%. Clearly that has not happened and probably for a few reasons. The selling by GHW? or other large holder effectively put the brakes on what was a steadily increasing SP. Without that we probably would be sitting at 1p by now. Unfortunately we cannot account for events like that. I don't think the recent article in Shares mag was particularly helpful either, very sweeping statements we could have done without. I know from a letter published in the rag today and other comments made that quite a few investors in sub penny shares are quite pissed off with the article. As usual not much remorse from Shares! There has also been a bit of negative comments on other boards who are perhaps trying to talk the price down so they can buy cheaper. I agree with OG's summation that we are probabaly fairly priced for a smallish profit. However, research would indicate that we will have much more.
All the best
pete
ptholden
- 11 Aug 2005 15:39
- 1323 of 2787
Thank you for your note and comments. I am on holiday until 15 August. The
figures are being prepared and I will review progress on monday. I willthen
announce the date of their release later in the week.
Kind regards
Tony
Rawlinson
Paulo2
- 12 Aug 2005 08:27
- 1324 of 2787
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