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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

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.

corehard - 02 Sep 2005 10:03 - 1471 of 2787

Nice tranche of buy's this morning.

sidtrix - 02 Sep 2005 10:19 - 1472 of 2787

Might also top up if get around .49-.50p :)
Still holding my 1 million... will sell hopefully around 1.25-1.5p

When this moves on some news...this will fly, just be patient!

overgrowth - 02 Sep 2005 11:28 - 1473 of 2787

Looking like very strong suppport at 0.50p guys - I'm not surprised there were a few buy orders in at that level - a veritable steal given recent profitable results and the positive outlook going forward.

Walktall - 02 Sep 2005 12:46 - 1474 of 2787

If only your decimals were correct.

WT

stockdog - 02 Sep 2005 12:58 - 1475 of 2787

They will be, they will be . . . . lol!


Can someone explain to me the significance of the very wide spread now imposed by MMs, .48-.58 is nearly 19% - until recently it has been about 10%.

sd

overgrowth - 02 Sep 2005 13:27 - 1476 of 2787

WT - lol! - now edited.

SD - The MMs want buyers, if they get more sellers then they're going to be punished with a poor deal - it's all down to the risk the MMs have to take on. With a slow moving stock such as DGT, they don't want to be left holding a large float of shares until the next buying surge.

stockdog - 02 Sep 2005 13:44 - 1477 of 2787

So, extrapolating og's and pth's comments above, we have a relatively small number of probably individual's selling off their entire holdings in multiple parcels whose size is limited by MMs.

So when that's over, there should be a sharpish reversal upwards as new buyers outweigh the now satisfied sellers. If this is a trough of about .50p, then the wave formation since January shows the top edge of the long-term channel crossing today's date at about .90p where we should be heading on the next up-cycle.

sd

EWRobson - 03 Sep 2005 22:34 - 1478 of 2787

sd: and that is just what the fundamentals say the sp should be. Bought on rumour up to around 0.8p; figures supported that level; but out they go, happy with what they've got and go where there is quicker action. then those who don't understand the fundamentals get worried and sell so in next to no time a third of the value has gone without any good reason. Actually, I don't criticise the approach of putting your funds where the action is. But the risk is you miss the next run-up on good news or even positive press comment. Would be topping up further but just don't have the free funds at the moment - bought back into ASOS instead and that is in anticipation of positive news that will hike the price up.

Eric

stockdog - 03 Sep 2005 22:48 - 1479 of 2787

Eric - I'd back DGT over ASOS between now and year end for a greater return, although ASOS will be less vulnerable to being stopped out or margin called for you CFD wallahs.

Although there was much talk that sell in May was not applicable to this year, sell in August might well have been more accurate. With the new month, I feel a new energy about to hit the stock market, probably in both directions.

It's funny how the crowd continue to behave like a crowd whatever the fundamentals - maybe they're just too lazy to do the arithmetic. At least I try, even if I get it wrong by several orders of magnitude.

Still haven't emailed TR to ask if TGM fell into H2 by any chance - perhaps I'm savouring the dream too much to want to break the spell by finding out it was in H1 after all.

sd

EWRobson - 04 Sep 2005 22:29 - 1480 of 2787

sd: You're probably right that DGT should move ahead further than ASC by the end of the year. I would see 1 as better than evens for ASC whilst 1p is around evens for DGT. ASC could hit 1.30 at best whereas DGY could move to 1.5p so the % favours DGT. However, ASC movement forward has a higher probability, almost a no-brainer. Best to have both! SEO could beat them both but bigger spread again of outcomes.

Eric

stockdog - 04 Sep 2005 23:45 - 1481 of 2787

How about all 3? Although I am quite underweight in ASC these days.

sd

stockdog - 05 Sep 2005 11:32 - 1482 of 2787

Well, folks, if the chart is showing a head & shoulders formation with the head at .83p and the neckline at .50p, we're off down to .17p!!! Although this would create such a screaming buy we'd never reach it. But just where do we think the sell-off would turn into a buying spree?

It's pretty painful to watch this, when all other stocks seem to be enjoying a first day of term buoyancy. I guess we just have to sit tight until the sellers have done.

It's a good lesson in holding volatile stocks - sell as soon as the chart says we are likely to be heading south from nice highs. You can almost always buy back in a gain lower down - failing that, buying in again at much the same level has usually removed a degree of risk, so there's not a lot to lose by taking a profit when you can, even for long-term holders. Ah, well, next time!

sd

markusantonius - 05 Sep 2005 12:38 - 1483 of 2787

Wish I'd have followed my own instincts with this one and not bought back in. Good advice abbreviation: DYOR - agreed! For what it's worth, I do think Dowgate will do very well but not in the short term. Hope I'm wrong anyway.

butane - 05 Sep 2005 13:05 - 1484 of 2787


We should get some fees for this work......



Interbulk Investments Plc (the 'Company')

Issue of Equity

The Board announces that on 2 September 2005 the Company placed 7,200,000 new
ordinary shares at 3 pence per share with the following parties:-

Number of shares % holding of
Enlarged Share
Capital of the
Company

Pacific Continental Securities 3,700,000 4.0%
UK Nominees Limited

Others (all less than 3%) 3,500,000 3.8%

The gross proceeds of the placing, before costs, are 216,000.

The proceeds will be used to provide further working capital for the Company to
implement its stated investment strategy.

Application will be made for the 7,200,000 new shares to be admitted to AIM.

The new ordinary shares will rank pari passu with the existing ordinary shares
of 1p each in the Company and trading of these shares on AIM is expected to
commence on 9 September 2005.

Subsequent to the above the new Enlarged Share Capital of the Company will be
91,420,492 ordinary shares.

End


stockdog - 05 Sep 2005 15:01 - 1485 of 2787

The above was in June. They also raised about 55k in March and another 48k in August - maybe adds up to 10k in NOAMD fees for the three?

sd

EWRobson - 06 Sep 2005 12:19 - 1486 of 2787

sd: Generated 250K cash in the last six months giving cash at bank of 736K. In other words a quarter of the current share cap. of approx 3m at 0.5p. With the turnover trend being up and operating costs stable could easily generate 500k in second half. I can't see the sp falling further with this scenario. Whilst the sp is suffering from the 'out of sight, out of mind' scenario, we can't be the only investors who are aware of the real value of the company. I wouldn't be surprised if TR doesn't top up shortly.

Eric
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