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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

white westie - 16 Mar 2006 21:32 - 2246 of 2787

Eric,

yes i had a Westie for 15 years he died nearly 3 years ago and i still miss him but i have never replaced him, we look after one for someboby now and again its a little girl so that helps a bit.

EWRobson - 16 Mar 2006 22:20 - 2247 of 2787

WW That's great. Tess is coming up to a year old and is a great character. Her nickname is 'bullet' and she keeps up with Honey the Labrador; we call Honey, sd will be interested, her dogmother; great pals. I believe there is a great Dog in the skies, who has a daughter as well as a son. sd, being very wise, is imbued with the spirit of this Dog. sd is keeper of the temple of DGT, entering into the holy places and coming forth with astute analyses; he has the gift of prophecy and is able to project the spirit of prophecy (sp) and determine the well-being of his followers. The holy literature, called Shares, holds that this emerging force is apocryphal and declines to include them in its tome. Nevertheless, the time is coming when DGT will be a force in the land and all that come, and don't go, will prosper. This is the word of Dog!

markusantonius - 16 Mar 2006 22:23 - 2248 of 2787

Eric, this may interest you, sir... http://www.whatisthesecret.tv/

Global Nomad - 17 Mar 2006 08:40 - 2249 of 2787

I think you all need to hold back a little on the celebratory drink/drugs.........the posts are becoming a little...how shall we say......flowery? keep up the good spirits and may dog be with you.

do dogs lol?

sorry to drop the capital.....do Dogs lol?

gn

Walktall - 17 Mar 2006 09:51 - 2250 of 2787

Can any chartists explain why at the exact point when we had the so called "Golden cross", the SP suddenly stalled and has even dropped back a touch.

WT.

stockdog - 17 Mar 2006 10:09 - 2251 of 2787

The correct expression is of course "hol", Blogal Monad!

Talkwall - it's a natural correction mid way through an extended period of upward momentum. Look at the following link for a succinct resume of chart formations - this comes under Flag, Pennant Continuation Patterns. Taking the flagpole to be 0.62 to 0.95 of the recent sharp upward break, one can expect to add the difference = 0.33p to the point at which we resume the next sharp move north - currently that would take us to 1.26p which is a figure proximate to those I have seen mentioned recently. Personally, I am not sure we will get all the way there in one leap - hence my mid-way next stage of 1.05p.

NB. this is only "predictable" AFTER the SP has broken decisively north of the top of the flagpole, 0.95p.

http://stockcharts.com/education/ChartAnalysis/chartPatternsNode.html

sd

Walktall - 17 Mar 2006 12:43 - 2252 of 2787

Cheers stockdog. Sorry for the delayed reply, had to attend to my grandads duties.

WT.

EWRobson - 17 Mar 2006 18:05 - 2253 of 2787

sd Helpful to have your flag explanation. Re the steps: you are suggesting smaller steps. Are you taking your starting point as 0.64 or 0.84p. If the former then we have steps of 0.3p and we should run up to about 1.24p as you say; then the third leg takes up just abouve 0.5p. That seems to make sense: if we break through 1p, why should we stop at 1.05p. The theory says that it is unlikely that we will get to 1.5p in one jump therefore there will be a staging post in between, thus the 1.24p. Sound reasoning? The other question is: does a dog laugh? it may chuckle; it may wet the bed; it may bite your hand off; it may lick your face. What do you do when deliriously happy, i.e. DGT has doubled?

Eric

stockdog - 17 Mar 2006 19:49 - 2254 of 2787

You may talk about third legs - for us it's generally referred to as a fifth!

Point(s) taken.

sd

Global Nomad - 17 Mar 2006 20:49 - 2255 of 2787

I like the dogs style....

EWRobson - 17 Mar 2006 20:53 - 2256 of 2787

We should have checked how he got on at Crufts! Not sure which class he was in - probably a class of his own; in which case he won it!

markusantonius - 18 Mar 2006 00:21 - 2257 of 2787

Sells:Buys were 6:1 today yet the price holds firm. Very interesting. Must admit I really thought there would be significant profit-taking during this past week but not so. Very impressed, to date. Nearly sold some but then one risks missing out on the next quantum leap (which will happen - it's just a matter of WHEN?, not if...!). Anyway plan to hold till at least the 29th. and see what comes out of the AGM.....?

corehard - 21 Mar 2006 13:21 - 2258 of 2787

Tumbleweed blowin' through these here parts agin !

EWRobson - 21 Mar 2006 15:51 - 2259 of 2787

The price easing with an apparent dearth of buying. The 0.9 deals likely to be buys but listed as unknown. We have the AGM next week so possibility of something to trigger renewed interest. Never fails to surprise me when people move on rather than waiting around to build their positions as the sp eases. Unlike with some companies, there is no particular reason why management should want to talk the sp, preferring to wait until there is some hard news to report. Suspect the sp will continue to ease but not as sharply as with the last interims.

Eric

capper - 23 Mar 2006 17:40 - 2260 of 2787

Has everyone gone on holiday?
Is this pullback (only to be expected after a dramatic rise) a correction. To what point do you think it will bounce. It is reaching the 20 day SMA which I feel could be the point to see further positive movement.

stockdog - 23 Mar 2006 19:36 - 2261 of 2787

capper - there is a sort of line at 0.86p which was the resistance point on March 2nd's previous peak and has now been twice bounced off over the last two days.

It's break out from the last level started at 0.81 on March 4th and ended up at the recent 0.98p peak, a 0.17p rise. It has now fallen back to 0.86p support, a drop of 0.12p which is 70% of the previous rise. I believe this is one of those mystical Fibonacci ratios (should be 66.67%, II think theoretically) by which shares retrace after a good rise, which I feel in spirit but do not fully understand. So - situation normal.

Recent fallback can also be interpreted as a downward sloping flag indicative of a continuation of upward movement to 1.08 next peak (0.98 - 0.81 is height of flagpole, added to breakout point, assumed to be today's high of 0.91 until altered by future chart development). Close to my above mentioned 1.05p as next stopping place up.

If we break down below 0.86 strict rules suggest selling immedaitely and probably being able to buy back in lower down - if by then you still rate the company a buy. I admit I probably won't have the discipline to do this and will sit like a rabbit in the headlights as my eyes fill with regret.

WDIK

sd

EWRobson - 23 Mar 2006 20:26 - 2262 of 2787

; quite likely 0.85I assume WDIK is wise dog in karma, but could be wanker despatched into kennel. Very wise expanation as usual. I prefer to combine a fundamental view with the chartist. The reason why one can discuss fibonnaci numbers is a high degree of confidence that the sp is heading for the ultimate resistance level of 1.5p. It is undervalued to a degree although the confidence needs to be proven by the next interims if not before by news of development or trading trends. The price rose on the back of considerable new buying on the results; a price in the 0.90s was seen by many as a good time to take profit but we now have a new set of investor/traders who will be holding for the next stage at least and longer term investors in for the longer haul. Suspect we are still weeding out a few profit takers on much lower volume. The question is, therefore, at what stage the new investors, including funds, will deem it advantageous to top up; probably 0.85p as sd suggests. May become clearer at AGM.

A very interesting way of looking at a share like DGT is to ponder the typical length of stay of the investor. I have got a fairly short wick and tend to find it difficult to stay static for long; if I judge that it is going to be several months before the next move, I can easily be shaken out, seduced by another opportunity with a quicker return. I can feel a level of impatience growing with my current portfolio all with excellent prospects but each awaiting something positive for the next stage of expansion (DGT, SEO, AZM, ASC, PXS). Sitting on the hands is immensely difficult. For sd, sitting on 4 paws must be twice as difficult!

Eric

capper - 23 Mar 2006 20:47 - 2263 of 2787

Many thanks to you both for those informative posts. I am here to stay and so I side with the rabbit and the headlights.

stockdog - 23 Mar 2006 21:06 - 2264 of 2787

Eric (ever rigorous in charting)

It's easier than you think with all those humans around - one of them is usually standing on two of my paws at any one moment - yowl!

Yes, still a number of impatient PI's who have realised the next leg up is not going to be hurried. Interested to see what the AGM on the 29th will do to market interest.

My mantra is to remind myself I don't want the money till I retire in quite a number of years time, so what's the rush. A confident 76% rise over the year from a share whose business I know and understand very well now is a much better bet than chasing new speculations. One thing I've discovered is that you have to buy a share to really get to know it. Then you weed out the non-performers (quickly using stop losses) and let the others bud and flower. I can't tell you how my portfolio has taken on a whole different robustness and growth since weeding out some deep losses and also thereby reducing the number of holdings to what I can deal with on a quick daily review basis and a more in depth quarterly re-balancing.

My next stage of progression is knowing when to prune at the peak and encourage the plant to re-bud lower down. I missed it on SEO at 28p last summer and more recently on FOGL's 180p peak (down now to 133p but still holding for the long-term). Whereas on DGT to sell half at .95 and put back in the same net money at 0.90 would have increased the number of shares in that part of my holding by 4.7% net of costs. That's not enough to risk being out of the market or that it would not fall enough or even to spend the time doing it when I know what 2006 trading figures and possible acquisition of broking business may mean to the PE and PEG and eventually the SP.

Yes, investing is like a garden. You plant lots of seeds and even buy some already showing above the ground, but if they don't flourish or they are not pleaasing you need to dig them up and discard them to leave more space for the others to occupy ever larger space as they grow into fine mature specimens. As you accumulate profits you buy a bigger piece of land and add more plants that way. Perhaps every few years you slash and burn everything and start again with an entirely new portfolio.

Excuse the doggerell.

sd

EWRobson - 23 Mar 2006 21:57 - 2265 of 2787

Great dog-gerell from the wisest dog in town! Not sure you thought of the theory and then implemented it or are using it to justify what you do! But its close to my own approach: I went through a period of chasing everything that moved, usually got in at the wrong time and out at the wrong time! Better to get to know what you have really well and, as you say, that means having a stake. I quite like the share that has collapsed after an over-enthusiastic run up because you can win for the second time! ASC and AZM have been like that and I hope / expect SEO to be also. DGT has also had its nadir although it had never really blossomed: now it is, I don't expect any significant problems, otherwise its low risk, and any correction should not be deep. I have taken a third out but that was for cash requirement purposes and I am still over the critical million shares!

Eric
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