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

746k protected sale so another seller cleared.

A million cross trade too so plenty of buyers to take the
stock off the sellers.

Deal Group Media PLC
26 September 2005

26 September 2005

Deal Group Media plc ('Deal Group' or 'the Company'



Holding in Company

Deal Group received notification today that, following a purchase of 7,000,000
shares on 22 and 23 September 2005, J O Hambro Capital Management Limited
('JOHAM') is currently interested in 35,335,000 Ordinary Shares of 1p each in the
Company, representing 9.32% of the total issued share capital.

"22 and 23"....they must have paid around 14p for their stock !

I bet they are not too happy but it may well cause a ripple of
buying by the smaller punter seeing as the price is half of what
they paid.

Mackem,

your right I was extremely bullish at the time I posted my recommendation on the board but I wasnt to know that Oil prices for several reasons were going to go to new highs and probably stay there now for years to come pricing inflation into the economic world business climate.

Having worked in the employment of some of Britains biggest blue chip companies in various positions in accountancy/ finance I can with confidence say that the advertising and media sector is going to come under tremendous pressure over the next 24 months and probably more.

Its certainly a sector I would be short of if I were prone to sell positions.

I wish you the best luck with your investment.

cheers Gf.

IC curses!!

Yup they should have known better. When you see a price fall like this one did for no apparent reason at the time, you just know the market or elements of it know something before a RNS is published.

cheers Gf.

Very pleased to see a lot of protected trades, the more that show
the more stock the sellers have sold, cannot see them having much
or any left by tomorrow if they continue to clear as much as they
have today so i still believe there's a good bounce on the cards short term.

I reckon there will be a decent bounce tomorrow after all those
large protected trades late on today and some of those will be
buys as well, combined with huge small support i will be surprised
if 7.5p offer lasts long if indeed it's 7.5p offer at all at the open.
Going to be a very hectic day, just remember Yoomedia recently
when they had protected sellers at 3p, once they cleared the stock
rebounded to 10p, i think DGM has the potential to bounce back to
10-12p in the next week or so.

Looks like you were right Mackem, well done a good call but overall I remain bearish of the sector.

cheers Gf.

Short term there's much more to come imho.

But because of the overhangs hundreds of punters were
allowed to buy in sub 7.5p so there will be many that will
take any small profit hence it will take a few days to get
above 9p, lots of day traders out at 8p bid but i think that
will be available before the close.

Got to be some holding news later for sure.

Here we go....director ADRIAN MARTYN MOSS buys 500k.

Shows this could be a bottom for the stock after heavy falls.

Another 14 million shares changing hands, dont know where
the mm gets the stock from but it dropped to 8p offer late on
and they got hammered again with some massive buys.
Like yesterday evening i'll will again be surprised if the price does
not rebound again, yes there's protected sellers getting out but
they must be running out of stock at this rate and 1.6 million was
bought after the close and all at a premium so i think it will get
marked up a touch in the morning or it will move up before 8.15am
once the non pro's return home and see the director 500k buy and
place some buy orders etc etc.

Sorry wrong thread.

mm's must be printing shares again today because
it's another day of sustained buying with only minimal rises.
When will they get short of stock ?

Another director buys 100k at 8.25p to treble their modest holding.

And another 550k cleared from the protected seller, if these sellers
are under 3% then they should sell up completely soon.

Another million protected sale at 8p !

I think these are Fidelity who went under 3% recently, say
they had 2% left, that would be 7.2 million shares, well in
the last few days there has been a lot of protected trades,
not all will be Fidelity but you have to think that they have
almost sold up by now, 7.2 mil is not that much to clear in
current high volumes.
Fustrating for holders to watch all this buying with very little
movement, all trades at 8.1-8.25p were buys today so dont
be deceived by the trade data, almost all buys today which
let clear over 1.5 mil from the seller(s)

Quiet day despite another small director buy, many traders ran
out of patience and sold to trade elsewhere.

Very low volume day for .5p drop.

goldfinger - 26 Sep 2005 11:01 - 363 of 383

I think this is one of many advertising/media firms both on and offline that are going to have to face very difficult conditions over the next 2 years or more. Whats the first thing a company does when its up against it, slash the advertising budget first of all.

I think there were warning signs with this one going back a few months ago now based on the macro rather than company specific problems. I got out just under the top but it gives me no great satisfaction to hear of holders being hit and complaining about large funds being forwarned.

Not the first goldfinger thread on which this has happened.

these people are stuffed