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 DCG - Decmil Group
Anyone following this stock? P/E of 5 and dividend yield of 9% not to mention cash on hand of 59 million. Seems really underpriced on market. Anyone know why?
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 Originally Posted by KW
Expectation that earnings are going to decline over the next three years (table taken from Comsec)
Even going by 2016's numbers that a yield of 15.8%, P/E of 6.3 and dividend yield of 8.9%
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Originally Posted by Chaowee88
Even going by 2016's numbers that a yield of 15.8%, P/E of 6.3 and dividend yield of 8.9%
Well, it now at $1.255, market cap 210 million and to think when it raised capital it was @ $2.05 with a market cap of 330 mill and @ that time it NPAT was 35 million, now it NPAT is around 50 million yet the share price is at an all time low... Mr market does wonderful things...
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Originally Posted by Chaowee88
Well, it now at $1.255, market cap 210 million and to think when it raised capital it was @ $2.05 with a market cap of 330 mill and @ that time it NPAT was 35 million, now it NPAT is around 50 million yet the share price is at an all time low... Mr market does wonderful things...
Yes, it seems strange at face value. But Mr Market looks forward and sees tough conditions for the sector - and acts accordingly. Rightly or wrongly.
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Originally Posted by macduffy
Yes, it seems strange at face value. But Mr Market looks forward and sees tough conditions for the sector - and acts accordingly. Rightly or wrongly.
What is even harder to fathom is this company is currently holding 59 million in cash with no debt so taking the current market cap of 211 mill subtract 59 mill in cash means the market is valuing this company at 152 million..
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Originally Posted by penn
Yes, the company put out a statement refuting the Ark claims:
http://www.asx.com.au/asxpdf/2014121...fc2w2gmjkd.pdf
........ but clearly this has had an effect on the shareprice. Sentiment surrounding the Manus Island centre and the refugee question generally add further problems, on top of the negative market perception towards companies in the mining services sector. The half-year result later in the month may clarify matters somewhat but I won't be holding my breath for good news, given the market performance recently!
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Originally Posted by macduffy
Yes, the company put out a statement refuting the Ark claims:
http://www.asx.com.au/asxpdf/2014121...fc2w2gmjkd.pdf
........ but clearly this has had an effect on the shareprice. Sentiment surrounding the Manus Island centre and the refugee question generally add further problems, on top of the negative market perception towards companies in the mining services sector. The half-year result later in the month may clarify matters somewhat but I won't be holding my breath for good news, given the market performance recently!
Sentiment is poor but one of the few companies out there which contains decent management who try to look after shareholders. Buyback is a good example and their prompt response to my query of why buyback has not begun surprised me. Definitely one company I'm willing to bet my house on.
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Originally Posted by Chaowee88
Sentiment is poor but one of the few companies out there which contains decent management who try to look after shareholders. Buyback is a good example and their prompt response to my query of why buyback has not begun surprised me. Definitely one company I'm willing to bet my house on.
And an Auckland house at that!
But seriously, good news from Decmil yesterday as they announced renewal of their finance facilities.
http://www.asx.com.au/asxpdf/2015020...50dhd7r3cx.pdf
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Member
Originally Posted by macduffy
http://www.asx.com.au/asxpdf/2015020...qnhrw9gpbk.pdf
More good news, buyback also started. Price still not reflecting value
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