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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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white westie - 10 Jul 2007 09:02 - 2682 of 2787
No buyers seem to be around at present and getting near results time, lets hope they are bloody good to get us out of the present rut.
On-line at present you can only sell 2.5K looks like they must have got a lot of stock to shift with all the selling of late mostly on Plus market.
Does anyone know if they have started this buy back yet?
white westie - 01 Aug 2007 08:43 - 2683 of 2787
they look reasonable at first glance but they have not made the sp shoot up far yet, maybe people away and the rest still in bed and not had time to digest them yet.
this bb has been asleep for almost a month.
kimoldfield
- 02 Aug 2007 10:19
- 2684 of 2787
The payment of a first dividend, though small, is encouraging and the chances of continuing payments gives hope of some returns at last. Dumped my main holding at a loss some time ago, still holding a small residual but will wait a bit longer before increasing.
johnstonp
- 03 Aug 2007 13:44
- 2685 of 2787
corehard - 14 Sep 2007 14:28 - 2686 of 2787
white westie - 08 Oct 2007 09:24 - 2687 of 2787
This share is so boring now it has become stagnant, some days hardly any trades recorded at all.
Only 1 transaction listed on the website for Sept, although they are worth more each time now than they were surely that is not good enough as we have extra staff and bigger premises to pay for.
I do not see any improvement on the PR side that TR said he would inprove on in his last statement in fact nothing of any importance has been said since results.
I would have though it was in their interest to announce something about progress in the first 3 months of this period to try and get this SP moving out of the rut it is stuck in as it is at a ridiculous low level but no one seem to care.
Where has E W Robson got to maybe he has sold out no posts from him for a long time, if you are still around how is that little Westie of yours i hope she is behaving herself.
ww
EWRobson
- 08 Oct 2007 21:48
- 2688 of 2787
Still here, though not particularly active in the market - still hold some DGT though well down on former times. My Westie, Tess, is in great form - also known as 'bullet' as she easily keeps pace with Honey, the Lab. Accepts the regular washing after walks with good grace.
My own view re DGT is that it has failed to keep to its earnings trend because of the financial market. Holdings in JR. (Just Retirement) and MSR (Mediasurface) have fallen back for the same reason - the latter affected because of the significance of the financial sector to their products. I don't see DGT as a share for the short term, rather one to tuck away. At some stage there should be a radical re-evaluation. There could be takeover opportunties in a depressed market, of course, which could strengthen the financial base of the company. I see this as more likely than being taken over given their heavy dependence on key staff who could easily be lost without control of their own destiny.
Good luck, Eric
white westie - 13 Nov 2007 19:53 - 2689 of 2787
Transaction in Own Shares
Purchase of own securities
On 13th November 2007, Dowgate Capital plc acquired 150,000 of its ordinary
shares at an average price of 14 pence per ordinary share. These shares will be
held as treasury shares.
Following the purchase and non-cancellation of these ordinary shares, the
Company has:
1. 150,000 shares held as treasury shares ; and
2. 36,993,590 ordinary shares in issue (excluding treasury shares)
Contacts:
Tony Rawlinson, Dowgate Capital plc 020 7492 4777
Philip Secrett, Grant Thornton Corporate Finance 020 7383 5100
corehard - 03 Dec 2007 11:24 - 2690 of 2787
ptholden
- 03 Dec 2007 11:35
- 2691 of 2787
white westie - 31 Dec 2007 11:19 - 2692 of 2787
Happy New Year to all fellow sufferers that is if there is anyone left on this board these days as it seems completely dead.
WW
budleyboy - 31 Dec 2007 12:32 - 2693 of 2787
white westie - 31 Dec 2007 12:41 - 2694 of 2787
long time no see we shall have to catch up again in the new year..
I also hope its not deadgate
Happy New Year to you also.
ww
EWRobson
- 02 Jan 2008 17:28
- 2695 of 2787
Just trying to think through a reason for buying such small quantities of their own shares - four transactions toalling about 1% of equity. I suspect the answer may be that they are purchases from staff because of the low level of the equity price. The implication could be that it is known internally that the proper price is significantly higher. Results should be out in March (1st in 2006, 30th in 2007 - latter following acquisition so early March likely). They must have kept pretty busy because they haven't had time to talk to their investors.
Well, that's one optimistic thought - any others?
Eric
white westie - 03 Jan 2008 10:00 - 2696 of 2787
You are still around then i did wonder as this board is now effectively dead on this share, most must have sold out and moved on, it used to be a good discussion board with good posters.
I hope that little dog Tess had a good Xmas and lots of presents (bones,toys etc)
I dont know what to make of the situation we are in with this company, its dropped off peoples radars due to lack of no contact or news flow from them since interims, the share is effectively dead at present.
The last time i e-mailed TR about my concerns at the lowly SP which is much lower than the consolidation price and lack of news from them he also said he was not happy at the lowly SP and they were working to address this issue plus to improve the PR side as the SP did not reflect the performance of the company.
Since that time they have said nothing to help the SP at all so i take it with a pinch of salt what he says until i can see some evidence they have done something to address the problem, i am beginning to think they dont care about us PI's as long as they can get their bonuses, although he did pay a divi last time to give us some crumbs.
If we can get this to rise enough i shall bail out like many others have done as i have been here 4 wasted years kept thinking this was going to produce the goods but i was wrong (my mistake.)
Time to move on to much better pastures which are out there.
ww
canary9 - 03 Jan 2008 10:21 - 2697 of 2787
Rod
kimoldfield
- 03 Jan 2008 10:57
- 2698 of 2787
snakey
- 04 Jan 2008 00:48
- 2699 of 2787
bestest new year to you all, particularly those long serving members from the original days when ol` Bob Geldoff was supporting us. I wonder if he still has an investment here ??
snakey
stockdog
- 04 Jan 2008 10:04
- 2700 of 2787
sd
stockdog
- 08 Jan 2008 11:08
- 2701 of 2787
They estimate EPS of 2.56p and 3.2p for YE Dec 2007 and 2008 respectively - prior to IFRS2, share based earnings etc. This gives PE values of 5.76 and 4.61 and a 2008 PEG of 0.18. With a maiden full year dividend estimated to be 1p - a yield of 6.8% - the fundamentals look very solid indeed. Equity Development points out that a dividend yield greater that the PE ratio is an old-fashioned buy signal - not difficult to see why.
Results for 2005 were published on 1st March 2006 and for 2006 on 30th March 2007 - a little later to incorporate merger accounting of the Ellis Brokers acquisistion. I anticipate we will revert to earlier in March this year. I no longer track each deal as I used to, so I have no idea how we are doing. At the half way stage we had pre IFRS2 EPS of about 1.39 I estimate, so well on the way to ED's year end target.
At just about exactly half of March 2006's SP, we do seem to have bottomed out and are pretty much flat-lining on minimal volume, with 13, 25, 50 dma all coincident with the SP as the 200 dma continues to fall to the same point.
ED have a 21p target, still leaving fundamental values well intact and, even after a modest share buy-back programme of 400,000 at 14p = 56,000, an ever increasing cash pile which I estimate at about 2.7m at 31st December - equivalent to 7.4p per share, or exactly half the current SP. They will either have to acquire another business, or else could start to look vulnerable themselves to a bid from another profit-diminished financial services company looking to appease its shareholders by buying in a fresh revenue/profit stream.
At a jot better than breakeven from my initial purchases in 2005, I continue to hold until results.
All imho as ever dyor
sd
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