Diligent Boardbooks IPO

[Whipmoney]

Whip, have you not, over the past year or so, been of the thinking that the market may be using a different valuation to the one you are? Absolutely nothing wrong with your calculations, but the market seems tp think your valuations are way off! I know, the market can be irrational and such, but why would you not give a **** about PE multiples when pretty much the entire world uses them to value companies?

I'm not sure how I can respond to this Moosie, but I have to ask, how do you know what the market is actually thinking?

With regard to my valuation methods (primarily DCF) this is pretty much the basis of every broker report that I have read on DIL. In fact I haven't seen even one price target that was primarily based on DCF Analysis as DCF analysis is relevant (yet still specific) to any company.

P/E ratios of the other hand don't measure cash-flow (which is king!). I'm sure you could find all sorts of similar companies that trade at a lower P/E to DIL, yet which generate significantly less or potentially negative cash-flow..

[kizame]

I personally think we need to stop second guessing all the multiples,at a glance this company is sitting on a rearward looking PE of 61,i personally think thats too high,until such time that it can justify this sort of sky high multiple again it should consolidate where it is.
the only real way in my opinion to value this company is via PE,luckily unlike lots of tech stocks it is Profitable,And in my opinion Profit is King,not cash flow,you can have great cashflow and still go to the wall.

[muss1]

I personally think we need to stop second guessing all the multiples,at a glance this company is sitting on a rearward looking PE of 61,i personally think thats too high,until such time that it can justify this sort of sky high multiple again it should consolidate where it is.
the only real way in my opinion to value this company is via PE,luckily unlike lots of tech stocks it is Profitable,And in my opinion Profit is King,not cash flow,you can have great cashflow and still go to the wall.

What are your thoughts on the huge one off costs and how they impact the PE? And the cash pile? I'm lead to believe the PE is actually closer to 30 and probably lower. And that's with some conservative estimates about the one offs. Second guessing the multiples (or calculating your own numbers that you can trust) is, in my opinion, the only to come up with an accurate valuation.

[youngatheart]

T-4 days and countin'

[winner69]

the only real way in my opinion to value this company is via PE,luckily unlike lots of tech stocks it is Profitable,And in my opinion Profit is King,not cash flow,you can have great cashflow and still go to the wall.

I would have thought cash flow was much more important than profit .... isn't the old adage CASH IS KING

Cash flows are hard to manipulate .... you can make profit anything you want it to be

[winner69]

Just putting it out there that if the window dressing at days end didn't happen today the chart would have been looking very sick yet again. Buyers have fled (yet again...),.and if tomorrow is a downer with no recovery after the restatement then we confirmed double top at $5.00 with lower highs and lower lows.

I suggest trading accordingly!

Don't know about the window dressing bit but agree stuff all buying support - just what you would expect from an unloved and unwanted stock .... what was the term again

[Baddarcy]

The negativity seems to be creeping back into this thread.

My expectation is that once all this accounting rubbish is out of the way next week, we can start all start speculating about 1) nasdaq listings, 2) uses for the ever growing pile of cash, 3)new product again.

My assumption has been that 1 & 2 have been put on hold by DIL while they got all the accounts in order so once the accounts are sorted we can expect some news from them. I also assumed 3) was too but the windows 8.1 app proved otherwise.

So why all the negativity?

[SimonHouse]

I tend to agree with Baddarcy.

The windows 8.1 app is a new platform, not a new product.

I also agree that once Diligent has released all the information the market expects, they will want to announce some "good news", since they will no longer be legally constrained.

[winner69]

DIL just like a new rave restaurant in Parnell

Great food, great service. great place to be seen at, always fill ..... but they kept a few punters waiting one night for their drinks and pissed them off ...... and everybody now goes to the other brand spanking new joint down the road .... while the original hot spot still serves up great food and is a great place still a lot quieter than a while ago .... but the old faithful still love it .... but even the number of those are steadily dimimishing

[blobbles]

HY is the big one for me, would be good to see them keeping their costs under control more.

Interestingly in their last report, they stated that the money for the European data centre is coming out of ongoing subscription revenues. They did not take it from their cash pile. While the reason for this might be tax efficiency, it does show that they just want to keep their cash pile intact. But without a plan for this cash, I don't see why they are wanting to do that. Me thinks they have a plan, hopefully they will share with us...

Personally I think the outlook for DIL is rosy, providing they can keep their costs down. A new market in Europe, the Windows 8.1 app removing sales blocks... I am hoping we start to see some bigger numbers from their sales reports soon.