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.....................

I am thinking just profit taking, I am not aware of any news that is affecting SP. Could be an opportunity to top up. I am hanging on into the results come out at end of month.

Just profit taking guys.

cheers GF.

A bit disturbing that it has broken through 20DMA. Unless there is a bounce tomorrow/ soon I think I may head for the exit for the time being.

rgrds
gk

What when result are coming up?
cheers GF.

gallick

if you want to use mumbo jumbo to exit, that's fine. I prefer to look at the company and its longer term potential and in that respect DGM has a lot more to offer.

Morning folks,

What do you regard as a good support level for this, I have a spreadbet and I would definitely like to keep my position open, but the sp is nuzzling quite cosily upto my stoploss .. 19p safe enough?

Gf, what is happening here then???

A few holders getting impatient and bailing out, nothing more. Once we get the results I think we will see further upward momentum.

cheers GF.

I wonder if there is something going on behind the scenes and in a few days they announce a major aquisition which might cause dilution in the sp for a while. I love DGM and think they have a huge distance to go - However these co's are aquisitive and the recent movement maybe more than profit taking. Why take profits now? Next 3-5 days may have more news for us...

I do hope you're wrong Poverty, I don't need a repeat of Yoomedia!!
Having got in at 19p it's looking a little worrying now having looked so good last week!!

If anything is going on it's more likely to be a take over.

Deciding whether or hold or sell at small profit and see what happens?

I think DGM are a good hold unless there is something kicking off next week - but who knows. I am going to hang on. I think DGM are in takeover mood rather than being taken over - but there again - who knows!

POOMedia - Yes I still have the scars on my wallet!!

what's up with you people - a small drop in price and the panick sets in. Look at what DGM offers - it has only just started and the big boys are yet to take real notice. I have said before that I think DGM will be taken over in the medium term. We'll see what happens (if anything ) next week. More likely the drop is due to the MMs being short of stock and trying to shake some free. There will be a time to sell DGM, but not yet.

Jim, agreed but in the past I've thought tricks by mm's and ended up in a loss situation having been in profit. Have to admit to getting out this afternoon with only 11% profit. Reason, I'm away on business early next week and two more days like the last one and I'd be red. Took my profit and can buy in again when it settles. Last year I kept taking losses on the chin and ended up with a portfolio 10% down, not this year though and 80% up and thats the way I like to keep it. I hope mm's still short next week, drop it further and then the rise that gives me confidence to get back in again and make more profits with DGM.If I had been in at 10-15p I'd be more relaxed but this did have a big rise before I got in at 19.25p.

LOL, please sell by all means and the more the better, it gives me an opportunity to load up on the cheap again. Now if I was a person of ill repute etc, I could add to the rumours and really get them very cheap. Jims right you know, but if you want to sell please do, I will take the slack up lovingly.

cheers GF.

Please go on guys knock them down to 18p or less, please make my year.

gf, took my profit on this one and admit I may have been hasty but if people are profit taking ahead of results combined with mm's playing tricks it could go back into the teens and I will buy again. For once I've taken a gamble of locking in profits with the hope of buying even more if it falls again next week. Might have called it wrong, the chance you take I suppose. I still think you're right and this will be a money spinner.

DGM will rise rather than fall

andysmith

like you i have no problems taking short term gains when appropriate. Its just that I think that with DGM (and the whole digital media advertising bit)the story is just starting. Part of the problem is lack of decent news flow and we need a good positive update.

jim, totally agree and the cash is there waiting to be re-invested. Another 2-3 weeks before results? So many times I've had these small companies, sat and watched them fall after meteoric rise and then once in a loss position don't buy to average down but wait for the rise again which sometimes doesn't happen.
I too believe this will bounce and fly but I've taken the gamble this time of taking profits, hoping for a continued fall next week and buying in again but with more at a lower price. Big gamble I know but I was in that kind of mood!!!