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DEAL GROUP MEDIA, My Tip For 2005. (DGM)     

goldfinger - 22 Dec 2004 11:51

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

draw_chart.php?epic=DGM&type=1&size=2&pe

jimwren - 20 Jan 2005 08:54 - 67 of 432

great update from DGM , very positive, let's look forward to mid-march. Given that the Internet is the only medium showing good growth in advertising it can't be long before DGM starts attracting the attention of some of the big ad agencies, either here or abroad.

goldfinger - 20 Jan 2005 09:13 - 68 of 432

Superb Trading Statement from DGM......................

Deal Group Media PLC
20 January 2005


Press Release 20 January 2005


Deal Group Media plc

Trading update


Deal Group Media plc, the full service online marketing group, which comprises
the newly rebranded operating company dgm, provides the following trading update
as it enters its close period.

Trading conditions for the year ended 31 December 2004 continued to be very
strong and the Board expects the Preliminary Results to be in line with the
uplifted market expectations as stated in the second quarter of 2004.

Trading for the last quarter reflected a growing demand among Christmas shoppers
to buy online with Group turnover increasing to 4.45 million for Q4 2004
representing 232 per cent. of the equivalent period for 2003.

The internet advertising sector experienced strong growth during 2004 and now
accounts for 3.4% of ad spend in the UK (Interactive Advertising Bureau/ PwC).
Industry analysts maintain a positive outlook for the sector, fuelled by rising
online penetration through the growth of Broadband, and increased demand for
advertising with a visible return on investment.

Against this background, the Group's performance has outstripped that of the
sector, increasing its market share by offering a broader sales mix. This has
been achieved by focusing on client retention, taking advantage of cross-selling
opportunities, and new client acquisitions. Recent wins include Oxfam, Standard
Life Healthcare, Alliance & Leicester and ING Direct.

During the final quarter of 2004, the Group undertook a major restructuring in
order to provide future scalability. There have been a number of key senior
management appointments across all disciplines, a reorganisation of the sales
and account management functions, and products have been structured into three
distinctive branded offerings: dgmPerformance, dgmSearchLab and dgmAdNetwork.
Additionally, the Group has embarked upon a business continuity programme to
provide a more robust technology infrastructure in line with its growing
business levels.

As stated at the time of the Interim Results, the Board continues to look for
potential earnings enhancing acquisitions and will update shareholders of any
developments.

Adrian Moss, Chief Executive of Deal Group Media plc, said: 'Our performance in
the last year has been in line with market and internal expectations. These
targets have been achieved by improving the Group's sales mix, thereby creating
a number of cross-selling opportunities, and through the acquisition of new
clients.

'The recent restructuring has been undertaken in anticipation of further future
growth and our rebranded products mark a step change in the presentation and
marketing of our services. We look forward to reporting our Preliminary Results
in mid-March.'


For further information, please contact:


Enquiries:

Deal Group Media plc
Adrian Moss, Chief Executive Officer /
Jonathan Lines, Marketing Director Tel: +44 (0) 20 7691 1880

cheers GF.

goldfinger - 20 Jan 2005 10:12 - 69 of 432

Buyers coming in now in force.

cheers GF.

goldfinger - 20 Jan 2005 11:24 - 70 of 432

Falling back a little now, chance to buy before they go over 20p.

cheers GF.

goldfinger - 20 Jan 2005 12:29 - 71 of 432

Traders taking profits, but the trend is onwards and upwards.

cheers GF.

goldfinger - 20 Jan 2005 13:22 - 72 of 432

Back to evens good stuff, come on lets have some blue MMs.

cheers GF.

Peter123 - 20 Jan 2005 13:24 - 73 of 432

My purchase is showing a sell any reason??

goldfinger - 20 Jan 2005 13:40 - 74 of 432

Peter they often get them mixed up. Looks like a lot of buys might be the same looking at the break even price and then the buy and sell totals.

cheers GF.

Peter123 - 20 Jan 2005 13:47 - 75 of 432

Thanks!

goldfinger - 20 Jan 2005 15:20 - 76 of 432

Still holding firm.

cheers GF.

mickeyskint - 20 Jan 2005 15:23 - 77 of 432

I really feel good about this one. Famous last words!

MS

goldfinger - 20 Jan 2005 16:05 - 78 of 432

Theres a lot taken profits today in fact its been very similar to when a company publishes its results and they are excelent but the share falls.

Speculators taking a few bob I feel. Im in for a much longer ride and will bring bigger profits home than they do.

cheers GF.

goldfinger - 20 Jan 2005 16:12 - 79 of 432

Been talking to Evil Knievil about this one this afternoon as hes interested in themutual .net and used this ones trading update as an example.

Been trying to get over to him that these firms dont need physical assets in fact the less the better. Also been justifying its fantastic growth in profits.

I think Im winning him over slowly but surely but hes a more cagey devil than I am, and thats saying summat.

cheers GF.

mickeyskint - 20 Jan 2005 16:14 - 80 of 432

Too right. The longer your in on this one the more you'll make. I reckon a one bagger at least.

MS

goldfinger - 21 Jan 2005 11:56 - 81 of 432

Moving on up after yesterdays excelent trading update.

cheers GF.

goldfinger - 23 Jan 2005 20:52 - 82 of 432

From Todays IMRG update....

e-christmas internet sales soar 20% (17/1/2005)
--------------------------------------------------------------------------------

Online shopping sales sparkled again as usual this Christmas despite significantly weaker retail demand, and in sharp contrast with disappointing high street's results, following what the British Retail Consortium described as "the worst Christmas for retailers in the last decade."

E-retail sales for November and December were up 20% on the previous year's exceptionally high levels, outperforming the high street by a factor of eight. High street sales grew by just 2.5%. Half of the UK population was shopping online this Christmas, spending more than 3 billion, which represented 6.8% of all UK retail sales. Stores without websites paid the price in poorer sales.

The IMRG Index reached an all time high of 1766 in November, just 57 months on from its start point of 100, in April 2000. UK online shopping sales for calendar year 2004 were valued at 14.5 billion.

cheers GF.

chad - 25 Jan 2005 13:43 - 83 of 432

GF. Is 4% drop today due to another bout of profit taking? Your previous post was very encouraging.

Tradx - 25 Jan 2005 15:53 - 84 of 432

chad,

profit taking is only to be expected after the almost straight line rise we have had, just as I expect that when they meet and exceed expectations and perhaps show a glimpse of what they could realy do next year, then this will motor on again, of that I am sure..

As always, time will tell.

Be lucky.

T..

goldfinger - 25 Jan 2005 22:53 - 85 of 432

Just Keep calm guys. We are in a position where the whole small cap sector is being downgraded for a few days.

Keep in there and ride it out.

Cheers GF.

goldfinger - 26 Jan 2005 12:23 - 86 of 432

2 very high profile appointments.

Deal Group Media PLC
26 January 2005


Press Release 26 January 2005


Deal Group Media plc

Appointment of Non-Executive Chairman and Finance Director


Deal Group Media plc, the full service online marketing group, announces the
appointments of Lord Stone of Blackheath and Andrew Dickson to the Board as
Non-Executive Chairman and Finance Director respectively with immediate effect.

Lord Stone of Blackheath was raised to the peerage as Baron Stone of Blackheath
in 1997. He joined Marks and Spencer plc as a trainee in 1966 and retired his
position as joint managing director of the company in 1999. He is currently a
director of several non-government organisations, a retail company and is
involved in several charities. He also chairs the charity DIPEx that helps
patients gain information on their condition and their options.

David Lees is stepping down as Non-Executive Chairman, but will remain on the
Board as a Non-Executive Director.

Andrew Dickson was previously finance director of the Ministry of Sound group of
companies, which he joined as group chief accountant in 2000. In his role as
finance director, he prepared and executed a strategy for a turnaround of the
company from a 12.6 million loss in 2002 to a 3.2 million profit in 2003. He
was instrumental in restructuring the business from 38 companies to 4 companies,
refinancing a 3i investment with a distribution to shareholders and negotiating
a 6 million long-term loan from Barclays Bank.

Andrew Dickson started his career as a trainee accountant at Coopers & Lybrand
in 1995. In 1999 he moved to become a financial controller at PA Consulting.
In 2000 he joined Invaluable.com, the antique collectors' website, where he
supported the finance director and IPO team for an impending float.

Adrian Moss, Chief Executive Officer of Deal Group Media plc, said: 'We are
extremely pleased to welcome Lord Stone of Blackheath and Andrew Dickson to the
Board. Lord Stone's unparalleled knowledge of the retail industry will be
instrumental to the business going forward as online retailing continues to
grow. Andrew has the right mix of growth company experience combined with a
strong record of restructuring businesses and internal processes. His
experience at Ministry of Sound demonstrates his ability to drive businesses
forward and create shareholder value.'

Lord Stone of Blackheath added: 'Online advertising and retailing is growing at
a considerable rate. This is a very exciting time to be joining Deal Group
Media, the UK's largest independent online advertising group. They are well
positioned to take advantage of this market and I look forward to being part of
such a talented team and their continued success.'

Lord Stone of Blackheath, previously Andrew Zelig Stone, aged 62, is and has
been a director of the following companies and organisations during the past
five years:

Current Directorships Directorships held in the past five years
N Brown Group plc Ted Baker plc
DIPEx Brainboost Limited

cheers GF.
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