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During the IPO season Francis Gaskins, editor of IPOdesktop.com & director of research for Equities.com, regularly appears on CNBC TV, Bloomberg, thestreet.com & other financial cable channels. On the day of the Visa IPO he appeared on four cable TV financial shows including Bloomberg... More
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  • DGI IPO, this week, much better value than GEOY 0 comments
    May 11, 2009 2:42 PM | about stocks: MSFT, GOOG, GEOY

    DGI IPO much better value than GEOY  http://bit.ly/DzSTA

    DGI summary ratio comparisons versus GEOY
    . price to tanbible book value: 2.2 versus -1.7 (very low, not good)
    . gross profit margins of 90% versus 48% and
    . operating margins of 35% versus 16%
    > Maybe the company is not desperately in need of money given the above comparison with GEOY.  GEOY is the one that needs the capital, not DGI.

    MORE
    > There is always hunger for a company with significant visible top line revenue growth with good margins, etc.  DGI's gross profit & operating margins are both significantly better than GEOY's

    > It's going to be mid-year 2009 pretty soon so people are going to be looking into 2010 for companies whose top line revenue has a chance of popping.

    > DGI has only two satellites & last year's comparison included an large apparently non-recurring order.  DGI is nearing capacity in any case, depending on the composition of the product/service stream.

    > The new satellite will double their capacity so it's not like a normal tech 'compare sequential quarter-by-quarter results'.  They are heavily dependant on one customer, which is a p/e multiple detraction.

    > Yes, most of the proceeds go to selling shareholders.  However, in this case it is probably ok because of the positive cash flow, low price to tangible book value, high margins, etc.

    > Based on the comparison with GeoEye, GeoEye looks overpriced, apparently GEOY has some sort of cult following.

    DGI pre-IPO report http://bit.ly/DzSTA

     

     

     

    Themes: IPO analysis Stocks: MSFT, GOOG, GEOY
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