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Dowgate Capital - Capitalising on the booming AIM market (DGT)     

overgrowth - 09 Feb 2005 20:52

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.

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.
Chart.aspx?Provider=Intra&Code=DGT&Size=Chart.aspx?Provider=EODIntra&Code=DGT&Si

stockdog - 30 Aug 2005 14:27 - 1451 of 2787

Oh dear! Doldrumgate has set in after the retracement to the 55.5p mid price level predicted following the head & shoulders. We are locked into a boring trading range of 53-63 on low volume - could be a continuation pattern penant from which we may even break lower. We need a few more Mediazests to put the zest back in the SP.

Keep the faith!

sd

Global Nomad - 30 Aug 2005 20:29 - 1452 of 2787

once again your aspirations get the better of you lol

55.5p.........maybe.......0.555p definately.....

keep the bone !

GN

stockdog - 30 Aug 2005 20:33 - 1453 of 2787

What's a factor of 100 between friends? If it were true you wouldn't catch me still posting here!

sd

rawsthornebj001 - 31 Aug 2005 10:45 - 1454 of 2787

Ive never seen a 1400 sell move a share price before! How finely balanced is this stock, makes the expression small cap more of an exageration, how about micro nonoscopic-cap. No wonder DGT is so volatile. As you say SD. it is August!

butane - 01 Sep 2005 13:41 - 1455 of 2787

Tellings Golden Miller Group plc

Appointment of Broker

The Board of Tellings Golden Miller Group plc announces the appointment of City
Financial Associates Limited as broker with immediate effect.

stockdog - 01 Sep 2005 14:33 - 1456 of 2787

Good news - sadly they are unblikely tobe fund-raising having just raised a slug by selling their bus interests and paying a special divident to shareholders. But it adds 5k to the annual retainer - elh.

Wish it would add 0.05p to the SP - what's happened to our cheery little share these days?

sd

ptholden - 01 Sep 2005 14:56 - 1457 of 2787

still holding sd, we just need to see a few new clients and it will start to trend up again. Everyone seems to have forgotten that a profit was achieved in H1!!

pth

stockdog - 01 Sep 2005 15:21 - 1458 of 2787

pth - glad to see I'm in good company.

just watch the long term up trend line Jan-Sep which cuts today's date at about 0.475p Precisely where the 200dma is - wouldn't you know it!). It would be comforting to bounce decisively off this rather than drift through it.

that said, I am still all in - sometimes wish I had the nerve to trade out at .80p and in again at .55p, but they do say the strongest nerves required are those to hold against the short-term crowd.

If this little company survives for 3 years (which I believe it will), it will not be as a continuing bottom-fishing minnow. It will either grow to something bigger and better or be snapped up by a predator. Either way it will give a good 3 year return on anyones money IMHO. One critical parameter in my mind is will it make the big break to higher ground before this cycle of heavy AIM activity turns down, or will we have to wait for the next one?

sd

corehard - 01 Sep 2005 15:21 - 1459 of 2787

sd - Still believe our cheery little share will come back (imho of course !)

stevieweebie - 01 Sep 2005 16:34 - 1460 of 2787

Ditto
I'm sure that there is a feeding frenzy going on in the offices of Dowgate.
Probably Laugh out load if they could see all us minnows thrashing about like fry amidst a pike lol.
Well I,m sick of cannine metaphors, thought fish would make a change.
Stevie

ptholden - 01 Sep 2005 16:54 - 1461 of 2787

sd

I do wonder if DGT will become a target for a bigger financial house. They are assembling a steady portfolio of clients and let's face it with such a tiny market cap they are easy prey. Whatever, I have held shares for nearly two years and will contiue to do so until something exciting happens.

pth

stockdog - 01 Sep 2005 17:35 - 1462 of 2787

btw - it would be good to see TR buy a few more at this price - pour encourager les autres.

EWRobson - 01 Sep 2005 22:18 - 1463 of 2787

Interesting to stand back and look at this one. I have not really explored the early history but the chart suggests it was floated at 1p in 2001, briefly touched 1.5p before receding to around 0.25p in 2003 on lack of prospects of turning a profit. Good progress saw a short term peak in early 2004 to 1.5p, settling down to trade around 0.75p when pth drew it to my attention. Then we had the founders leaving under a cloud with associated costs and the sp fell back to approaching 0.25p around Xmas time. It was then that I got seriously interested and stached a cool 3.5m away although sold around 2m at a decent profit. The point I am leading up to is that against expectations at launch, taking into account typical growth pains, the company is doing rather well. It is into profit, has a positive cash flow, has established itself in the market and has excellent management. It is certainly worth the 1p it was launched at, which is only a cap. of 6 for heavens sake. We don't need to check each piece of business because you are always behind that way. Better to take the trend line to higher proifts in the second half. My tactics are, given funds availability, to build up the holding buying up to 1p. We don't need to talk about takeovers. The reason for the low sp is short-term interest fading with the results; lack of institutional interest because they are too small; out of news out of sight syndrome. What I say is: don't worry about the lack of trading/investment interest, just build up a really good holding, declare it if it gets over 3% and live to enjoy the fruits. We can also have a nice on-going chat on these columns. So what: the sp drop on a small sale; that is just the MMs doing their job. The great thing, we know this super little company very well indeed, we like it, we know it is going places, and we can participate in that success. lovely jubly!

Eric

stockdog - 01 Sep 2005 22:36 - 1464 of 2787

eric - with so many sells in round figures of 150,000 going through today, do you imagine someone may be shorting this share? I don't want to reach for poor excuses, but those are not PI's selling their entire holding to move on, nor could they be serious profit takers for the value involved. Have a bunch of different investors all simultaneously decided to trim their holdings by a meaningless amount? Or is it one person with an eye to pushing the price down?

Your thoughts please.

sd

EWRobson - 01 Sep 2005 22:52 - 1465 of 2787

sd: the first five transactions were sells of 150K. I have been in the position as a buyer when I have had to buy in small tranches as the maximum trading amount on-line and the sp has moved before I have completed. But the amount in total was only 4k so almost certainly a small investor closing his position or reducing it. No signs in later trading of shorting; they tend to be repeated small amounts spread out for the sake of effect. Also the sp then held despite an adverse balance of sells to buys. In the end of the day, this is where the balance of buying and selling is, reflecting that we are into a period of no or little news for some time. The fact that the minimum value of this investment is 1p, and I believe that beyond reasonable doubt, has very little to do with today's trading. It says very little for the trading community (or even investing community) that I treat them with such disdain. They do not know value when they see it; they are seduced by attractive stories; cannot read a balance sheet and do not see the reality of an emerging company , despite the evidence of profits and postive cash flow staring in their face. So what! eventually the share will achieve its proper value and that gives plenty of opportunity to build up one's stake! I would say, 'steak', but then you want a really good Rioja to go with it!

Eric

stockdog - 01 Sep 2005 22:56 - 1466 of 2787

Looking forwawrd to a really good roger (whoops, sorry, rioja) when I get home tonight (yes I'm still in the office after a long conference call to US) La Cantera - great buy from Laithwaites delivered to your cellar.

ptholden - 01 Sep 2005 23:23 - 1467 of 2787

sd

Unlikely that anyone is shorting the share, the cap isn't big enough for ordinary mortals to use a leveraged account (CFDs / SBs). I think you will find that the succesion of 150k sells is one investor disposing of his / her holding in the maximum amount allowable by the on line limits at the time. probably would have made more sense to use the telephone and save on Broker's fees!

Anyway, mine are tucked away and will have another look next year.

pth

stockdog - 02 Sep 2005 00:44 - 1468 of 2787

thanks, eric and pth - mine too (althoguh I do admit to peaking most days)

markusantonius - 02 Sep 2005 01:51 - 1469 of 2787

And mine to thanks to PTH and Eric (sorry guys!!).....

:o(

stockdog - 02 Sep 2005 09:41 - 1470 of 2787

Well, as eric says, with anticpated profit of about 500k for the year and 619m shares in issue, a modest PE of 12 gives an SP of 0.97p. With a profitable, cash generative business turned around with good management and nowhere to go but up, it was irresistable at today's new low. I've topped up with a modest couple of hundred thousand at a bargain .51p.

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