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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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stevieweebie
- 03 Feb 2006 14:40
- 1931 of 2787
Lol
stockdog
- 03 Feb 2006 14:47
- 1932 of 2787
I make us 12k above 50% of estimated 1.35m overhead less 33% operating profit for bonuses so far without counting any advisory fees for admission of Strontium, White Star and IAF - I have their quarterly retainers in, but nothing for initial advice on admission - any ideas what to allow anyone for each of these three?
After one month of the year, only another 23,500 retainer fees required to hit my H1 target of 387,500 and another 195k for advice and commission to hit 525,000. For H2, only another 131,500 to hit retainer target of 495,500. Over the weekend, I'll think about upping my targets for 2006.
Although nice rise on double average volume, it's still only 17 trades with nothing greater than 5,000 spent and one or two quick profit takers - so PI's rather than institutions, but then they'd swamp it with one trade - probably can't get near it without sending the price into the stratosphere.
35% rise in a week on one of my two main (3 X normal weight) holdings based on solid fundamental value results, not speculatiive flurry, is terrifiic. Now TR can report solid 2005 results with fantastic future prospects as well. Fascinated to know how 2005 turned out - was I close or as wildly out as I was for H1 2005.
Very happy with this week - sorted out my portfolio last Friday, kicking out the dogs (ouch!) and am up 17% across the board since Jan 1 (but don't ask me how I screwed up last year, although I didn't lose anything!)
Good luck everyone - it can only get better!
sd
corehard - 03 Feb 2006 15:11 - 1933 of 2787
Good to see some of the strong silent posters back... along with the Dead ones !!!
ptholden
- 03 Feb 2006 15:15
- 1934 of 2787
Looks like patience is beginning to pay off for the longer term holders. Not sure why the SP should start to be rising like this, on what is relatively small volumes. I do get the feeling that something is going on behind the scenes (filling a large buy order?) or something of that ilk perhaps.
Buisness is looking good once again and assuming that they haven't gone mad on H2 bonuses DGT will report an operating profit for last year.
Anyway, whatever is going on, I'm happy to hold.
pth
Paulo2
- 03 Feb 2006 15:17
- 1935 of 2787
corehard - 03 Feb 2006 15:20 - 1936 of 2787
ptholden
- 03 Feb 2006 15:21
- 1937 of 2787
Paulo2
- 03 Feb 2006 15:23
- 1938 of 2787
Sorry, just had to!
ptholden
- 03 Feb 2006 15:24
- 1939 of 2787
lol
Walktall - 03 Feb 2006 15:27 - 1940 of 2787
WT
markusantonius
- 03 Feb 2006 15:34
- 1941 of 2787
Paulo2
- 03 Feb 2006 15:45
- 1942 of 2787
canary9 - 03 Feb 2006 16:31 - 1943 of 2787
EWRobson
- 03 Feb 2006 17:02
- 1944 of 2787
I am just wondering whether I actually inadvertently triggered the whole show. Had realised most of the holding to support lifestyle demands - you know what they are. Decided to come back in with 10K which I needed to put by the dealer: the trading max yesterday morning was 100K anyway. So I did a protected trade at .53p with a guarantee of 500K. They offered to do the lot at close of play for 0.60 but I took the 500K which was shown as a sell. Had another go this morning with a protected trade at 0.58p with a guarantee of 250K. Off the price went probably influenced by my guy trying to pull in some stock. There was obviously no way that I would get them at 0.58p so I took the 250K (again shown as a sell) and set them looking for the balance at 0.67p. Finally bought these in at the close, some 850K at 0.68p.
Thought there would be some interest in this process. Shows how narrow the market is. Clearly one or two other relatively small traders looking for shares at the same time. Not surprising with the results indicated at the end of February. What this does show is that the sp will move rapidly on a modicum of interest. This happened at the interims and the extra volatility gave the opportunity for some to take good profits before the price fell back. Anyway, glad to be back in the million club. I'll pop back in later to explain the basis of my bullish views. Can't see shares being dragged out of you folk prior to the results so the key thing is: what happens then?
Eric
Walktall - 03 Feb 2006 17:09 - 1945 of 2787
I haven't had to cash any in so still hold my million and will keep the faith.
WT.
markusantonius
- 03 Feb 2006 18:49
- 1946 of 2787
EWRobson
- 03 Feb 2006 19:19
- 1947 of 2787
I said that I would comment further on case for buying. The first point is confidence in the management team. Rawlinson said that H2 would be a period of consoilidation. The first action in 2006 was the appointment of another consultant (25% increase) indicating strong trading.
I've looked at your figures, stockdog, and suspect that they are over-cautious. Not a criticism. However, your H2 figure is less than H2 of 2004 which is unlikely. It seems to me that a reasonable assumption is that H1 is matched which would give profit figures of 580K. It is likely that some first half bookings were delayed into the second half given the policy of not taking credit until the assignment is completed. That implies earnings per share of 0.094p. Even a dividend is possible given that the company is cash flow positive. If a dividend is not forthcoming that itself is positive given that the reason would likely to be funds required for expansion. Interesting how aggressive the external shareholders might be in encouraging growth as contrasted, say, with stability which I suspect is Rawlinson's style.
Given the expansion in capacity the expectation would then be for not less than 25% growth in 2006 and an earning per share of 0.12p. Given a positive statement then pe should not be less than 10, perhaps on a projected basis which gives a likely price of 1p to 1.2p. Thats my target price range and explains why I have come back in relatively heavily (for me). I can't see any downside to the current price and there could be significant upside on these figures. You could see them wanting a share issue to remove them from the negative image of being a 'penny share'. Note that 1p is only 6.2m cap. Perhaps analysts will be looking not too far ahead to a cap. of 10m.
Finally, we are really privaleged to be able to hold shares in such a little nugget with a strong position in a niche market. Normally, such a company would be private, except that, in this case, they are selling flotation services so need to be afloat themselves!
Believe this will be post 1947. Wish my grandad had bought some shares in some fledgling financial company, even Royal Bank, in 1947. Tuck some away for our grandchildren?
Eric
Global Nomad - 03 Feb 2006 20:33 - 1948 of 2787
GN
butane
- 03 Feb 2006 20:54
- 1949 of 2787
I expect this will put us on a few radars.
From UK-analyst.com
Shares in smaller company Nomad and broker Dowgate shot ahead by 0.1p to 0.64p. The company, which was highly profitable at the half way stage, has recently won a number of new clients, though as yet, has not made an official announcement. Bulletin board comments were largely responsible for the interest, though it would appear the huff and puff may be warranted, with Dowgate seemingly motoring on all fronts of its operations. With the stock now trading almost 45% higher than it was a week ago, a statement should really be made.
Paulo2
- 04 Feb 2006 09:21
- 1950 of 2787
Huff and puff my derriere! Reckon they should thank me for pointing them towards a bloody good investment.
Oh well, I'm glad it's all kicked off. Time to sit back and enjoy.
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