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

People are selling their stock to pile into diamond miners, NML and CDG

I think smallcaps are taking a battering today Stuart. I'm in DGM and the future is rosey, however for the immediate time being it'll probably yoyo the 19-25p level in psynch with the market.

Agree that the future seems rosy - information posted above provides encouragement each time I read it!

Just wondered though if I was missing some news item or some rumour as although small caps are getting it today, 8% seems significant.

Cheers for response.

Not that I've heard, IC rated them as fairly priced on Friday which may cause some slip in the SP, other than that I can't see much to worry about for the time being I expect it will recover. All IMO DYOR

Given the results, the drop is quite exasperating as they were really good and even the brokers note puts them as a buy, I guess this is just the traders moving out but it leaves them as oversold at the moment, IMO!

Some very large buys going through today, including MM and B trades. Should see another tick up by close. Looking positive today for DGM.

Yes certainly looks back on track.

cheers GF.

Hope the below makes sense, I always read a mid price trade at a specified time as a buy unless the share is rising very fast so my guess is that someone has just built up a fair size stake this morning for approximately 400k, not peanuts by any chance!

07/04/05 08:50 21.0 1,100,000 O 20.75 21.25 ? 1,550,000
07/04/05 09:25 21.0 500,000 O 20.75 21.25 ? 1,282,440
07/04/05 08:51 21.0 500,000 O 20.75 21.25 ? 1,236,541
07/04/05 09:19 21.0 250,000 B 20.75 21.0 Buy 1,015,195
07/04/05 08:58 20.875 250,000 T 20.75 21.0 ? 560,395

Shares has written a plays update indicating that it belives that DGM is undervalued based on a prospective PE of 16 and the house brokers (Durlacher) forecasting business more than doubling at EBITDA and pre-tax profit levels in 05 and 06.

Makes a good read on a Friday.

Cheers,
Stuart

dgm sp up for the fifth day running NICE

DGM will be a share to buy. Will reach 30p by June.

Looking good guys, NICE.

Hey stop knicking my catchphrase LOL. NICE.

cheers GF.

gf do you still follow CRA?

Hi All,

Can anyone attend the meetings? I am quite new to this board, but like to dabble
in shares. I seem to pick good shares, but have not quite got the knack of gettign out at the right time. possibly due to work commitments so can not watch the shares.

I would like to come a long to the next meeting, as I do find this board is very good compared to others.

Colly

049, yes I do and its moved up nicely of late.

I have three portfolios, long term, medium term where Corac is now and my traders. I tend to concentrate on the traders to give them a push. My appologies for not going for the others, but please keep the board informed and I will help.

cheers GF.

I see that Yahoo have announced a big rise in profits due to "a surge in on-line advertising". Good news for DGM.

Yes certainly had a knock on effect.

cheers GF.

GF do you still hold these? I got out a while ago when they started to drift and can't make up my mind if it's worth getting in again.

MS

Yup still in with my original tranches. Not commited to making any other purchases yet until we get an acquisition or two to push up EPS. Management say they are commited to taking on board quality players. Fairly priced at the moment but no room for any slip ups.

cheers GF.