DCG - Decmil Group

[Chaowee88]

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?

[Chaowee88]

Expectation that earnings are going to decline over the next three years (table taken from Comsec)

Earnings and Dividends Forecast (cents per share)

2014
2015
2016
2017


EPS
29.5
25.0
23.1
22.0


DPS
13.0
13.0
13.0
12.4


Source: Thomson Consensus Estimates



Even going by 2016's numbers that a yield of 15.8%, P/E of 6.3 and dividend yield of 8.9%

[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...

[macduffy]

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.

[Chaowee88]

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..

[penn]

Have you guys seen this? http://medianet.com.au/releases/release-details?id=818151

[macduffy]

Have you guys seen this? http://medianet.com.au/releases/release-details?id=818151

Yes, the company put out a statement refuting the Ark claims:

http://www.asx.com.au/asxpdf/20141219/pdf/42vmfc2w2gmjkd.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!

[Chaowee88]

Yes, the company put out a statement refuting the Ark claims:

http://www.asx.com.au/asxpdf/20141219/pdf/42vmfc2w2gmjkd.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.

[macduffy]

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/20150202/pdf/42wc50dhd7r3cx.pdf

[Chaowee88]

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/20150202/pdf/42wc50dhd7r3cx.pdf

http://www.asx.com.au/asxpdf/20150203/pdf/42wcqnhrw9gpbk.pdf

More good news, buyback also started. Price still not reflecting value

[cloggs]

True, but I think it also still has a way to go. Saying that it went up 7.5 cts today.

[Chaowee88]

True, but I think it also still has a way to go. Saying that it went up 7.5 cts today.

So some light at last as to why DCG's share price has slumped, Acorn selling down, but DCG has run up to 147.5 now. Must be Acorn running out of steam.

[Chaowee88]

So some light at last as to why DCG's share price has slumped, Acorn selling down, but DCG has run up to 147.5 now. Must be Acorn running out of steam.

Market waking up to this undervalued player at last, up to 166 asx now, my pocket growing bigger by the day.

[Chaowee88]

Down again damn

[Chaowee88]

Whoa this stock is violent

[Chaowee88]

Whoa this stock is violent

Good steady half year result from Decmil today. Revenue well up, NPAT down slightly as expected due to lower margins, half year EPS already 14.41 most likely will beat broker forecast of 23 this year.
Dividend maintained. Overall a good result I think.

[Chaowee88]

Good steady half year result from Decmil today. Revenue well up, NPAT down slightly as expected due to lower margins, half year EPS already 14.41 most likely will beat broker forecast of 23 this year.
Dividend maintained. Overall a good result I think.

Steady full year result, dividend maintained but the outlook looks rather bleak. From what in their pipeline their profit next year looks to be around 25 million a big fall. Dividend might take a hit too.