Diligent Boardbooks IPO

[Balance]

Well.....no-one?....I don't see any bids.....

Also, if you take the time to actually read the proposal on the new issue of Preferred Stock, in the event of a (likely IMO) liquidation, the Preferred Stock holders are in line for 150% of their capital.....i.e the "Commoners" get stuffed even more than usual

The Directors unanimous recommendation reads like a Tui's ad

Perfect timing by some of the directors and management. Buy when everyone is still aggro at the company.

[Anna Naum]

Looks like the new Chairman has some ideas why the shareprice has been going up.

http://www.stuff.co.nz/business/3416...-says-chairman

[Balance]

Always a good idea to watch carefully what directors and main shareholders are doing. Contrary to popular belief on this site, many insiders know exactly what they are doing.

RBD is the best example.

PPL is another.

[zigzag]

Holy shiat!

Who would want to invest in this dog?

Diligent operating loss

4:30AM Friday Feb 27, 2009

Software company Diligent Board Member Services yesterday announced a US$11.8 million operating loss for the 2008 financial year.

Diligent produces Diligent Boardbooks, a web-based system to simplify board meeting materials.

It moved its software division from New York to Christchurch in 2001.
The 2008 financial year was its first full year as a listed company on the NZ exchange.

Sales for the 2008 year of US$2.93 million were up on
US$1.73 million for the previous year. But operating expenses were US$12.87 million, including US$6.2 million for marketing and US$5.4 million in general expenses.

Up 400% in the last year. Do you know of any more dogs Doc. I think your negative attitude is clouding your judgement.

[Rif-Raf]

Up 400% in the last year. Do you know of any more dogs Doc. I think your negative attitude is clouding your judgement.

Get real! Anyone that invested in this is still down 55%. Ok so they were previously down 85%. Company value at $40m and revenue only US$3m and still making heavy losses. If this isn't a dog what is? This is very high risk.

[bermuda]

Get real! Anyone that invested in this is still down 55%. Ok so they were previously down 85%. Company value at $40m and revenue only US$3m and still making heavy losses. If this isn't a dog what is? This is very high risk.

Hi Rif Raf,
I have it on pretty good authority that this will be $1.00 by year end. I am tied up in Aussie CSG but I was tempted. This breaks even late this year. Stay onside.

[Balance]

Get real! Anyone that invested in this is still down 55%. Ok so they were previously down 85%. Company value at $40m and revenue only US$3m and still making heavy losses. If this isn't a dog what is? This is very high risk.

Depends on your entry point surely? Those who got in at 10c would disagree with you. Those who got in at $1.00 probably long gone.

[Lizard]

Been one of the best-performers on the NZX this year. Probably long past time to look at it...

Has to be one of life's little mysteries as to why they have a market cap of near $50m (plus 32.7m units of pref shares, worth at least $20.6m of market cap since they convert 1:1). From the annual report, looks barely solvent, has negative shareholders equity and would seem likely to post at least one further FY loss (barring any adjustments to the value of the SSH LLC Note). Has a very high ROE if you put the negative profit over negative equity...does that count?

At least that market cap will make it a lot easier to raise a bit more capital to get through to profitability without massive dilution. Still, at 63cps, it seems to me shareholders would need to believe they can hit at least $9m NPAT within 5 years to be worth the hold.

Anyway, well done to any holders that got in during the low patch.

[zigzag]

Lizard. Read the PDF version of the latest quarterly update. Especially check out the graphs at the bottom of page 2. Thats my favourite graph at the moment.

[Lizard]

Lizard. Read the PDF version of the latest quarterly update. Especially check out the graphs at the bottom of page 2. Thats my favourite graph at the moment.

That's nice, Zigzag. Nice little business. But is it enough to lead to the kind of profits that are required to justify current market cap (especially taking into account the prefs)? Quite frequently, reality sets in with tech stocks shortly after they start reporting profits and P/E ratios stand out in black and white.