folks here is my take on DCS. Firstly you have to look at the turnaround, which the company has made in the last six months. The final results posted in March showed a loss of 7M and also comments that trading was and is difficult.
http://www.advfn.com/p.php?pid=nmona&cb=1093448890&article=7178216&symbol=LSE%3ADCS
Today we saw the results for the first half of the New Year. A remarkable turnaround showing a profit of 2.8M (which included the 33% sale of the automation unit) and much improved trading conditions.
http://www.advfn.com/p.php?pid=nmona&cb=1093448889&article=8570338&symbol=LSE%3ADCS
Here is an extract from the Chairmans statement


During the first half, the Group has made strategic progress. Transport and
Logistics has signed a licensing and development contract that provides a rapid
and lower cost route to realising the new J2EE product suite that will be
demanded by the market in the future. In parallel, T&L has strengthened its
presence on the ground in both the European and Asian markets. The Automotive
Division has started to roll out its SAP-based Quantum product in Germany,
Switzerland, Austria and the UK. These achievements, which are already
attracting strong interest for the future, have required investment in Product
Development and whilst this has reduced our trading profit, it is nevertheless
positive.

The investment of #6m by ADN in the Automotive Division, together with their
option to acquire the remaining 67% of the Division has provided the necessary
funding to implement these strategies and is most welcome.


OUTLOOK

Transport and Logistics continues to win contracts around the world and we
expect the value of these wins to build as the new product modules become
available. Despite the weak economies in Germany and France and the continued
impact of Block Exemption slowing investment decisions, there are signs of
increasing demand for our Automotive products and we expect to make progress
here in the second half.

People have mentioned about the deficit that the company presently has. Well there are two factors to mention here;

1. The banks are fully supporting the company they know more than we do !

2.There is a strong possibility of Auto Data Network purchasing the remaining 66% of the automotive division and thus wiping out the debt which they have.


We would then be left with a lean, profitable company. The main reason for the recent share price drop was Aviva selling out their entire holding amounting to 2.74M shares. This is not by any means a massive overhang and once cleared expect the SP to be around a 50% premium from this level.

250K picked up yesterday

This from another board

Until this morning i was wondering just how Dcs could survive with such massive
gearing, it was in the region of 400% but they seemed to pulled the rabbit out
of the hat with a superb deal with Nasdaq listed Auto Data Networks in which
they have invested 6million into DCS Automotive to obtain 33.3% of the share capital of DCS Automotive ("Initial Purchase").
They also have a option to buy the remaining 66% which if taken up would
almost eliminate their debt.
They must be confident that this subsiduary is going to do well because it is
currently just making a operating profit.
In a nutshell this is a terrific deal and Dcs is now a very good long term investement imho, very surprised the price did not go much higher today, the
next results could well surprise the market, i get the impression they are doing
a lot better than what is known in the public domain, they have gained new
contracts according to their website but have not went to further lengths to
issue a RNS.

Press Release Source: Auto Data Network


Auto Data Network Updates Guidance for Current Fiscal Year
Thursday September 23, 9:35 am ET


NEW YORK & TUNBRIDGE WELLS, UK--(BUSINESS WIRE)--Sept. 23, 2004--Auto Data Network Inc. (OTCBB: ADNW - News), a provider of software and real-time data services to the automotive industry, today announced that it is updating guidance for year ending February 28, 2005.
In April, the company completed the acquisition of 33.3% of DCS Automotive. The terms of the acquisition agreement included a mechanism for DCS Automotive to sell the remaining 66.6%. ADN has agreed to purchase the remaining 66.6% of DCS Automotive at the end of ADN's November quarter. DCS Group Plc.'s CEO, Stephen Yapp, (the parent company of DCS automotive) will be joining ADN as Group CEO upon completion of the transaction.

Well not the sale news I was expecting but a further reduction in the debt. Still view this as a recovery play and seeing that the market reacted positively to the news of this sale I expect a further mark up on confirmation of the sale of DCS Automotive.

What no interest ? Looks like I will be making money on my own again !

Nice 500K Buy at the close sets things up nicely for tomorrow.

Now this is starting to look more than interesting ! Someone picked up another 1% of the company today with the 250K buy at the close.

I am sure it will not take too much for the price to rise on a few buys tomorrow.

Also worth a look is the webiste at

http://dcsgroup.co.uk

If you look at the news items you can see the transportation group has won quite a few contracts this year.

Some nice buying activity today. Have a 15p price target now on these once the Automotive Div is sold in Jan 05.

Looks on the way to a chart breakout.

L2 3 vs 1

Moneyman

chart looks quite attractive and had these mentioned to me a couple of times this week. Planning to review the fundamentals this evening - have you looked at them or do you just trade on the chart?

Bought some today Fundy. Bit narked at some geezer buying 100k and flipping the offer just before I was manoeuvring some cash into place! Cost me a few shares.

This is a total play on the company clearing down its debt. The key is completing the sale of the remaining 2/3 of the auto division. A US company (Auto Data) that is traded OTC on Nasdaq (not main) has an option to buy this 2/3 and it has said in its own guidance that it is completing this after its Nov 04 quarter. That will add 12m to the bank and clear the debt to about 5m - far more manageable. The CEO of DCS Auto is apparently to become CEO of the US co. Must be important to them!!

The share price collapsed to 7p in the summer after Aviva sold out its stake of 10% of the company. That overhang has only just cleared. The highs of the year (18p) seem eminently achievable and I believe the fundamental position has improved since then.

So anyone joining tomorrow ? Price is stable at 12p and L2 very strong. Announcement for sure in Jan regarding further disposal which will mark the price up further.

Buys over 20K are delayed by an hour so the early bird will catch the worm.

Southwind Limited upped its stake last week to 9.8% from 6.8%.

Described in another company's prospectus:

"Southwind Limited is an investment company registered in the British Virgin Islands and owned by a trust of which the beneficiaries are the infant children of Bob Morton.....".

Bob Morton can see the light a bit more clearly too.....

Some further relatively heavy buying at above the offer today. The market makers are short of stock as on-line they will give you mid-price for 100k but you can buy naff all at the offer. Whether there is any whisper about the balance of the Auto Division being sold to ADNW I do not know. Today's action suggests more upside to me.