Deal Group Media is the biggest and only true online advertiser on the whole of the London stock exchange. Its business is that of focussing on delivering high returns to its clients from online advertising through all differing sizes of web site and search engines. The massive increase in online advertising means it is at the very leading edge of the growth in the industry.

Just a few raw figures to look at in this industry.

*Internet advertising now accounts for around 4% of all company advertising and is growing as a % of all company advertising, we are only at the very beginning of a Mass market.

*The market is expected to break 500 million by the end of December.

*The market saw a 75% increase in revenues in the first 6 months of 2004, so you can see the growth is really staggering.

*Just take a look at this site and others and see all the adverts and pop ups plastered around, theres a good chance that DGM have a hand in many of these adverts.

*The biggest growth stimulant has to be the growth in online shopping and this should increase the market size for many years to come.


The last results reported were very encoraging indeed and 2005 shold be the year this one really breaks out and shines, here are the main points.

Deal Group Media plc, the online marketing group whose activities include
performance-based advertising and search engine marketing, today announces its
interim results for the six months ended 30 June 2004.

Highlights


Business transformed by merger of The Deal Group and IBNet plc


Combined operations turnover 6.55 million (878,000 by former IBNet plc)*


Pre-tax profit 619,000 (before amortisation of goodwill)


Pre-tax profit 45,000 (623,000 loss by former IBNet plc)*


New blue chip clients being won


Core business achieving record growth month on month


An increasingly positive online marketing outlook


Further progress anticipated in the second half of 2004.

The company as an impressive list of clients.......

: AOL, Autotrader, American Express, BT, B&Q, Cancer
Research, Comet, Coral, Dial-a-phone, easyjet, esure, Halifax, Interflora, John
Lewis, Littlewoods, Ladbrokes, Lloyds TSB, Match, MBNA, MoreThan, Nestle, phones
4U, Tiscali, Virgin Megastore, 888 and many more.


Key growth sectors are: mobile telecommunications, broadband, financial and
automotive, with further growth coming from gaming, travel and retail.


On results Adrian Moss, Chief Executive, said:

'We are delighted with the results now being delivered by the Group and our
promising potential. The foundations put in place following the merger, our
focus on delivering return on investment through measurable online marketing for
advertisers and our industry profile, are proving to be a combination that is
delivering value for clients, shareholders and other stakeholders alike. In a
marketplace that continues to grow and consolidate, we are seeking further
acquisitions to broaden the width of our offering and extend our geographic
reach. We look forward to continued growth.'

The company are making great strides to grow organically and are looking at the very large European market were acquisitions will be made.

Outlook

We anticipate that the second half of 2004 will continue to progress
successfully. Turnover exceeded the 1 million a month landmark for the first
time in 2004 and has consistently remained there. Month-on-month, the
Performance Network channel is enjoying record growth. The online advertising
channel is now establishing itself with regular repeat orders. Search remains a
strong growth opportunity and the newly launched affinity channel shows early
signs of success. Our key channels are growing and we anticipate they will
continue to do so.
With nine months of the new business operating and significantly outperforming
the previous entities, we have a solid base to continue delivering for our
clients and shareholders. We can only repeat the sentiments of our 2003 Annual
Report - we remain confident and excited about the Group's prospects.

Fundies.

Y/Ending 31-12-2004 EPS 0.50p P/E 25.00
Y/Ending 31-12-2005 EPS 0.80p P/E 8.5

So forward P/E of 8.5 is very cheap for an online growth stock.

Alpha/Beta

The beta is on the low side so it wont exactly fly, but all in all it looks a solid growth investment. Certainly not another 'As Seen On Screen' but as per this weeks Investors Chronicle, low beta stock have greatly outperformed high beta stock this past year.

Does it have any minuses, well although not a minus some from the old school would be looking at Intangible assets and amortisation of goodwill but as an healthy profit making company I see no reasons to be negative here.

It is a cyclical industry is advertising but lets face it we are now on the upcurve and more and more businesses are turning to the internet for cheaper advertising solutions.

Conclusion

This looks a solid sound investment and although I wont put a figure on the Sp with its ongoing fantastic growth I would be hoping for a very exciting performance during 2005.

DYOR

Cheers GF.

By the way the chart added as per Dils request.....................

Yup moving on up now.

cheers GF.

Finally bought into this stock, although I seem to have been watching it rise for about 3 months. Just hope I haven't missed too much of the party!

rgrds
gk

Shares mag may have some news on it thursday morning.

cheers GF.

GF. Did you get into Stanelco over the past few months? Its been an amazing performer, tripling in 3 months, beating even DGM. It only came to my attention about a month ago and I am always dubious about coming late to stocks that have doubled in such a short space of time. Just wondered if you had been lucky enough to get in. It was tipped again in Shares mag today.

Hi chad, last week out of that 50% shares mag portfolio stanelco stood out as the best pick. I was rather impressed.

Anyway nice to see DGM moving up slowly but surely.

cheers GF.

For those who were asking last month (re Malcolm Stacey monthly interview) when the next interview was taking place, its tonight guys.

Below is the breakdown of Malc's four companies referred to (not named!) on 12th January 2005 when interviewed on BBC Radio South. Malc's original 1,000 investment (250 in each), would today be worth 1,245.73 which is a 24.6% profit in just under a month. Not bad!

Malcolm will be interviewed again tonight on the same programme to review his picks.

Deal Group Media PLC (DGM.L)
Purchase price (12/01/05) = 15.25p
Price now (10/02/05) = 23p
No. of shares purchased for 250 = 1,639
Value now = 376.97
Percentage Gain = 50.8%

Invensys PLC (ISYS.L)
Purchase price (12/01/05) = 18.00p
Price now (10/02/05) = 20.5p
No. of shares purchased for 250 = 1,388
Value now = 284.54
Percentage Gain = 13.9%

New Millennium Resources PLC (NML.L)
Purchase price (12/01/05) = 4.75p
Price now (10/02/05) = 5.125p
No. of shares purchased for 250 = 5,263
Value now = 269.72
Percentage Gain = 7.9%

Straight Group PLC (STT.L)
Purchase price (12/01/05) = 147.00p
Price now (10/02/05) = 185p
No. of shares purchased for 250 = 170
Value now = 314.50
Percentage Gain = 25.9%

Total Valuation:
Initial Investment = 1,000
Now Worth = 1,245.73
Total Percentage Gain = 24.6%

For info.


cheers GF.

Hopefully Malcom Staceys interview should push a few more buyers the way of this one.

cheers GF.

Dont forget tonight, BBC Radio South.

cheers GF.

What time please, GF?

Just found out it was 8.30pm, anyway theres another one next month and for the rest of the year, where he reviews the same 4 shares progress.

cheers GF.

Off to a flying start.

cheers GF.

Nice to see this break even on the day.

cheers GF.

Looking to a strong start tomorrow.

Same here Hlyeo98, fingers crossed.

cheers GF.

Quiet start for this one.

cheers GF.

Disappointed in DGM at the moment :(

Looked very positive a couple of weeks back and topped up but now thinking that the funds could be better invested elsewhere. For example, MMG in preparation for tomorrows presentations - don't think it can hurt to have more MMG tonight/tomorrow and they have moved off an earlier high to where I think they will finish the day.

Loathed to let go of DGM when I think there is so much potential.

Decisions, decisions ...

Stuart

MMG is a good one to get into stuart. However I would'nt dump DGM. Although it has gone quiet I would hang on in. Get into both if you can, patience will reward you.

LOL

MS

Patience is a virtue. LOL.

cheers GF.

Not normally as impatient but with limited funds and several stocks I'd really like to get into I'm having to consider trade-offs that I really don't want to :(

My main reason for considering reducing on DGM is that it is a while until any significant news is expected. MMG, for example, has potential for some short term action on the back of tomorrows presentation to brokers and over the coming weeks with increased press coverage - looks as though 150p is a cert.

Unless I have missed any news on DGM or have got the date for results wrong ??

I feel there is scope to jump out and back in before the action hots up.

Feel free to comment and tell me I'm insane ;)

Cheers,
Stuart

Right, although I really should be working (but that is just too boring!!), I have spent time manipulating my cash to allow me to get into MMG (in a small way) while retaining DGM. Have put DGM on a bit of a tight stop order with a view to get back in later as I totally expect it to be a huge performer this year.

Sorry for my on-the-board ramblings! Your comments were appreciated.

Cheers,
Stuart