Sharesmagazine
 Home   Log In   Register   Our Services   My Account   Contact   Help 
 Stockwatch   Level 2   Portfolio   Charts   Share Price   Awards   Market Scan   Videos   Broker Notes   Director Deals   Traders' Room 
 Funds   Trades   Terminal   Alerts   Heatmaps   News   Indices   Forward Diary   Forex Prices   Shares Magazine   Investors' Room 
 CFDs   Shares   SIPPs   ISAs   Forex   ETFs   Comparison Tables   Spread Betting 
You are NOT currently logged in
 
Register now or login to post to this thread.

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

corehard - 31 May 2006 09:42 - 2372 of 2787

Tumbleweed again !

Kivver - 31 May 2006 10:03 - 2373 of 2787

I went to the ''master investors'' show, with lots of presentations from people who run tipsheets (Tom Winnifrith, David Linton etc). They were very reluctant to expand and give too much away but they all gave one tip they were very conifident and positive about. The main ones I noted were Centamin Eygpt, Daniel Stewart, Access Intelligence and Dowgate. These nearly all have massive spreads and i did invest in ACC and DGT. In this current market i am well down. I know its early days but any slight inkling I may have had of investing in one of these tip-sheets is right out of the window. If this is thier very best tips. Appreciate i have to give more time though.

markusantonius - 31 May 2006 13:29 - 2374 of 2787

If the offer price gets back down towards 0.60p (which it might, at this rate!) then The Shark may jump back into these dodgy waters once more? AIM/FTSE is all red this week and I see no signs of a widespread upturn just yet. There could be more red still to come unfortunately. Under current conditions, Kivver is right to forget the tip-sheets. But long term, I do expect Dowgate to deliver.....

EWRobson - 31 May 2006 18:56 - 2375 of 2787

kivver Welcome to an 'old' sparring partner. Like a lot of the smaller caps DGT tends to drift between statements. Because the CEO is a worker, there is no publicity between twice yearly results so we are now awaiting the interims which were on 21st August last year. If you compare profile with last year the sp then eased back far more (after the interims although they were good). So there is an argument for taking profits around the results and coming back in lower down. If you haven't done so you should read stockdog's analysis which indicate that the interims should be very good indeed for reasons that he elucidates. I suspect there may be a run up to test a 1p resistance level before the results with a breakthrough when they occur. markus may be right that the sp will come back further but he's been known to miss the market before! lol!

Eric

petermoran - 31 May 2006 22:06 - 2376 of 2787

website updated. 75000 + 20000 nomad fees

Global Nomad - 31 May 2006 22:14 - 2377 of 2787

thanks golfer

ptholden - 31 May 2006 22:56 - 2378 of 2787

I don't think there is much doubt now that TR and his team are building a small growing business. I haven't been following the growing list of clients very closely, but I would guess that DGT must be close to achieving sufficient recurring income to cover the operating overheads; then all new clients income go straight to the bottom line and I would expect to see significant expansion in order to generate further revenues. All we need is evidence of six monthly growth via the results and the SP will take care of itself.

pth

ptholden - 01 Jun 2006 23:31 - 2379 of 2787

Interesting volumes over the last few days, can't think of any paticular reason other than that a largish order has been placed, either to sell or buy. Personally I would go for the Buy option, don't believe that what you see as buys and sells in the trade columns reflect the true story.

pth

markusantonius - 02 Jun 2006 03:22 - 2380 of 2787

PTH, With FTSE/AIM taking a hammering accross the board recently, Dowgate were bound to suffer. I know this is your little gem but I think you guys may have to hold for a few more months before the sp rises significantly. Selling and buying back later may not be an option either because of the large spread emerging again. Decisions, decisions!! Still a good long term hold, I agree, but will only buy back in if it slides to 0.60p. Chat later about this.....

ptholden - 02 Jun 2006 08:22 - 2381 of 2787

Markus, I agree that DGT is very much a cyclical stock based on Results and it is unlikley we will see any real action until Results time again. My post was just making conversation more than anything based on watching the recent market activity. Just because a trade is displayed at the bid price most assume it is a sell which convinces them to offload, hence filling the order at a bargain price. RIL were able to build their holding with barely a shift in the SP. Personally, I don't really mind if the SP drifts, for those who know the stock it will present a nice opportunity to top up before it gets going again late in the Summer.

pth

EWRobson - 02 Jun 2006 22:08 - 2382 of 2787

Volumes really nothing to writ home about. The volume chart says it all: relatively heavy volumes twice a year then drift and then interest coming up to the next announcement. In the meantime Rawlinson is too busy running the business and earning fees to make any annoucements. We know that they are doing well from the flotation references and announcements of new staff on website. There has been less drift this time than previously as I think most holders realise they are onto a winner but need to be patient.

Eric

stockdog - 05 Jun 2006 20:44 - 2383 of 2787

Have to take issue with MA's assertion re the spread (he seems to have come to bury DGT, not to praise it, as you might say) - I've never seen it as small as it is today at 2.7% .73 - .75p.

The latest transaction for Euro Investment Fund leaves us having earned an estimated 92% of my targeted new earnings for H1 with another 4 weeks to go.

I was surprised that it took till 30th May for DGT to follow suit with the across the board fall of all stocks. I guess the prospects of reduced business, as potential floats are pulled whilst the stock market is so uncertain, have by now been worked through.

Nothing to be done except wait for H1 results and hopefully a trading update with a positive forward-looking statement for H2 at the end of June.

Still can't decide whether I am frustrated not to have been able to trade the last two weeks, or just thankful I missed all the angst. Having been abroad on business week1 and on holiday week2, I was prevented from minute by minute analysis of the market and so remain fully invested, albeit for the loss of most of this year's hitherto healthy gains, exacerbated by being, for technical/timing reasons well over-extended on SEO at the wrong time!!!. All other holdings have held up remarkably well and some have recovered a good deal of ground already.

Ah well! Rule 1 remains intact - not to lose money!

sd

markusantonius - 06 Jun 2006 02:05 - 2384 of 2787

Apologies, SD, you are right to state a low spread atm (3.27% I now read) but was 14% on my screen at the time of posting. Did not mean to "bury" DGT. Quite the opposite as the co. is one of only a few which has actually made me a few quid consistently over the years once breaking even-ish but the other trades were all winners! Now an excellent company, well managed with great prospects. But I am finally learning (the hard way!!!) when to take profits. The recent sp dive was obvious to me but I'm sure it will bounce back albeit we may see it dive a bit further in the current climate - through no fault of its own, I hasten to add.

BTW we have a lot in common with Stanelco - if only you knew!!! :o(

stockdog - 06 Jun 2006 07:55 - 2385 of 2787

Cheers MA. Wish I knew when to take profits!

sd

arawli - 06 Jun 2006 09:02 - 2386 of 2787

Just added another 500k @ 0.74p Didn't think I would see this price again!

Andy

EWRobson - 07 Jun 2006 14:35 - 2387 of 2787

Andy: Good buy! I suspect you are probably right. Expectations should start to grow from now on re the end of the half year.

sd: There was a trading statement last year on 21st June which was caused by an unexplained rise in sp. So not a precedent but the same thing could happen again!

Eric

stockdog - 07 Jun 2006 16:42 - 2388 of 2787

Eric - except this year it would not be unexplained would it??

moneyplus - 07 Jun 2006 17:17 - 2389 of 2787

sorry off thread but could you 2 debt experts give me your opinion on DETS Debts .co.uk please? It's a new float and rising well-I like to get in at the beginning so I've started a thread. still holding my DGT but not adding at the moment in these markets!

arawli - 07 Jun 2006 19:36 - 2390 of 2787

Website updated with Corsie group Float

65,000 Corparate Finance Fee
18,000 p/a Nomad

ptholden - 07 Jun 2006 20:23 - 2391 of 2787

DId a rough top up last night; taking 20,000 for NOMAD fees and 5,000 for acting as Broker, DGT recurring income is now approx 1M, very close to covering operating overheads (assuming TR dooesn't get too carried away awarding himself a huge bonus). Looks like growth is a given and although I expect the SP to loaf for a few months I am really looking forward to the next set of results. Having held DGT shares for nearly three years, it is quite gratifying to own a small part of what is becoming a success story.

pth
Register now or login to post to this thread.