# DWS - DWS Limited



## alex keaton (6 April 2009)

This company has been unfairly treated recently and been sold down heavily over the last year. 

They have an amazing track record of growth and are still providing great returns.

Zero long term debt, amazing looking balance sheet, high margins (for it services) 

It's looking good for a breakout over 60 this week, Volume picked up towards the end of last week.


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## alex keaton (6 April 2009)

*Re: DWS - DWS Advanced Business Solutions*



alex keaton said:


> It's looking good for a breakout over 60 this week, Volume picked up towards the end of last week.




And there she goes.. up 9% this morning (on light volume)

Chart has next short term resistance is at 75c


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## imajica (13 September 2009)

*Re: DWS - DWS Advanced Business Solutions*

This quality stock got hammered with everything else at the beginning of the year and is recovering to more appropraite levels. However, it has forecast growth for the year ahead and maintained a very healthy 9.5c dividend fullly franked. I bought stock midway through last week at $1.22 and closed on Friday at $1.305   will dip tomorrow as it goes ex-dividend but will be looking to top up as I believe this business model will shine over the long term.


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## b4subi05 (15 February 2010)

*Re: DWS - DWS Advanced Business Solutions*

Any holders of this stock on here?
Half year results seemed to be well received by the market today.


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## fanger (5 October 2010)

*Re: DWS - DWS Advanced Business Solutions*

I'm looking at getting in on this stock but I'm not sure on what price to get on at. Its had a good run since June but its starting to track back down again, any suggestions?


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## McCoy Pauley (19 November 2010)

*Re: DWS - DWS Advanced Business Solutions*

Good question, fanger.  Did you take a position in DWS?

I've been looking at DWS closely for some time but my itchy finger hasn't quite pulled the trigger.  Certainly seems to be a well-run company and I like the fact it has no debt.  I'm also sentimental to the company because it's a sponsor of the mighty Hawks. 

Share price seems to be a bit volatile at the moment, with a slight downtrend according to my uneducated eyes.  Would be nice to see it break upwards.


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## fanger (22 November 2010)

*Re: DWS - DWS Advanced Business Solutions*

I got in around the $1.63 mark then the stock went up to $1.70 then took a dive and now its sitting around $1.58, so I'm down around 3%. I'm not worried the stock still is looking good plus it has a 7.5% fully franked dividend and an esimated 13% growth for 2011.


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## babka (22 November 2010)

*Re: DWS - DWS Advanced Business Solutions*

Sharing your views, it is a good company, very well run business, good divvy and the report to the shareholders was good too. Roger Montgomery rates DWS as A1 business with very good fundamental values. I am, too, a holder.


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## McCoy Pauley (1 December 2010)

*Re: DWS - DWS Advanced Business Solutions*

Nasty surprise in the market update released today.  A major telco client of DWS informed DWS that reduced services from DWS would be required over Christmas-New Year's.

Share price dropped 10+% in the 90 minutes after the update was announced to the market.

I'm a bit surprised DWS didn't ask for trading in its shares to be traded, because you'd be laughing if you sold out of DWS in the morning, before the announcement was made.

The announcement has made me reevaluate my views on DWS.


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## skc (1 December 2010)

*Re: DWS - DWS Advanced Business Solutions*



babka said:


> Sharing your views, it is a good company, very well run business, good divvy and the report to the shareholders was good too. Roger Montgomery rates DWS as A1 business with very good fundamental values. I am, too, a holder.




Bad announcement today that put a 20% dent in this proven past performer. The profit downgrade was ~10% which isn't a lot, but considering the market was probably expecting +10% earnings growth... also I found the message in the announcement a bit cryptic - why would a single client pausing work over a month and a half cause such a large downgrade in profits?

$1.50 was a good support level but now will probably turn resistance for a while.

OKN was another IT company with a recent downgrade... will it become a trend in the industry??


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## ubtheboss (2 December 2010)

*Re: DWS - DWS Advanced Business Solutions*

This is a good buying opportunity in my opinion.  The sell off has brought DWS to a nice discount to intrinsic value.  Adjusting for the downgrade I have a 2011 value of $1.61 with a 12% required return.  If they get back on track, which considering their history I have confidence they will, then 2012 is $1.83.

Having said that, it was in a downtrend before the news so I'm not buying in till it hits around $1.20


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## fanger (2 December 2010)

*Re: DWS - DWS Advanced Business Solutions*

I picked up some more after the stock tanked. I didn't get the bottom but not far from it.


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## robusta (2 December 2010)

*Re: DWS - DWS Advanced Business Solutions*



fanger said:


> I picked up some more after the stock tanked. I didn't get the bottom but not far from it.




Same with me. Dived in to pick up a nice chunk of this business today. Six months time everyone will be wondering what all the fuss was about.


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## McCoy Pauley (2 December 2010)

*Re: DWS - DWS Advanced Business Solutions*

Brave move, I think, to dive into the market straightaway.  I wouldn't be surprised to see DWS congest for a few months before taking off again.  Could take up to six months to replace the revenue lost through this slow-down.


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## robusta (2 December 2010)

*Re: DWS - DWS Advanced Business Solutions*



McCoy Pauley said:


> Brave move, I think, to dive into the market straightaway.  I wouldn't be surprised to see DWS congest for a few months before taking off again.  Could take up to six months to replace the revenue lost through this slow-down.




You could be right. I have had DWS on my watchlist for a while now just waiting for it to get cheaper, though I wish I was looking in June @$1.12!! But hey a company like this does not come into my price range too often. I have no idea what the sp will do in the next six months but I am fairly confident the NPAT will grow fairly significantly in the second half of FY 2011.


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## robusta (3 December 2010)

*Re: DWS - DWS Advanced Business Solutions*



skc said:


> Bad announcement today that put a 20% dent in this proven past performer. The profit downgrade was ~10% which isn't a lot, but considering the market was probably expecting +10% earnings growth... also I found the message in the announcement a bit cryptic - why would a single client pausing work over a month and a half cause such a large downgrade in profit?




Found the announcement a bit cryptic as well

"Based on the information available at this point DWS anticipates H1 EBITDA will be between $12.0M-$12.5M (PCP $13.4M) and expects the H2 EBITDA results will be impacted by not more than $1.0m."

Is this a profit warning or not? Notice they are talking about EBITDA not NPAT. If you take a look at DWS annual report you will see they are talking about increasing consultants from ~500 to ~ 1000 by 2014 also the new Business Analytics practice with IBM / Cognos delivering higher margins.

Everyone will have to make up their own mind on DWS but for me I became a shareholder yesterday and bought more today when they became cheaper.


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## McCoy Pauley (3 December 2010)

*Re: DWS - DWS Advanced Business Solutions*



robusta said:


> Found the announcement a bit cryptic as well
> 
> "Based on the information available at this point DWS anticipates H1 EBITDA will be between $12.0M-$12.5M (PCP $13.4M) and expects the H2 EBITDA results will be impacted by not more than $1.0m."
> 
> ...




Yep, I noticed that in their announcement earlier this week.  Very strange, I thought.  I think I'll wait for their next guidance to see what effect the slow-down will have on the bottom line.


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## ubtheboss (4 December 2010)

*Re: DWS - DWS Advanced Business Solutions*

6 days of trading lower on increasing volume.  Fri about equaled Thur volume.  I'm dying to jump in to this one.  I originally had a buy in at $1.20 but pulled it.  From a purely TA point of view they say lower closing prices on increasing volumes is a bad sign short term.  You want to wait for the volume to decrease significantly, the sp swings to moderate and you want that to consolidate for a period of time.  It means the sellers are exhausted.  The consolidating period though...who knows how long that is or should be.  When a stock is sold off too hard and the RSI plummets south you will at least get a dead cat bounce.  Whether the trend then reestablishes a northward travel depends on the real story of the company.  DWS has a great history and one client pulling a bit of work does not mean disaster.  It just means an over reaction by the market.  

Having said all that I'm going to buy some at $1.20 then wait till the selling settles and then buy a lot more. 

If you're looking for other great quality stocks to follow check out MCE, SWL, ARP, MLD.  Another, FGE, has been sold off after a short burst following a profit UPGRADE.  Just fast money going in and out.  Opportunity there for sure.  Good luck.


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## skc (6 December 2010)

*Re: DWS - DWS Advanced Business Solutions*



ubtheboss said:


> 6 days of trading lower on increasing volume.  Fri about equaled Thur volume.  I'm dying to jump in to this one.  I originally had a buy in at $1.20 but pulled it.  From a purely TA point of view they say lower closing prices on increasing volumes is a bad sign short term.  You want to wait for the volume to decrease significantly, the sp swings to moderate and you want that to consolidate for a period of time.  It means the sellers are exhausted.  The consolidating period though...who knows how long that is or should be.  When a stock is sold off too hard and the RSI plummets south you will at least get a dead cat bounce.  Whether the trend then reestablishes a northward travel depends on the real story of the company.  DWS has a great history and one client pulling a bit of work does not mean disaster.  It just means an over reaction by the market.
> 
> Having said all that I'm going to buy some at $1.20 then wait till the selling settles and then buy a lot more.
> 
> If you're looking for other great quality stocks to follow check out MCE, SWL, ARP, MLD.  Another, FGE, has been sold off after a short burst following a profit UPGRADE.  Just fast money going in and out.  Opportunity there for sure.  Good luck.




Profit warnings usually come in sets of 2 or 3. So often you see management predicts a return to higher profits in the second half, but without providing any valid points on how that would happen. That always suggests to me there is more pain before any turnaround. Take someone like PRG or NOD for an example...

I like buying good companies when they get sold off for no reason. I don't like buying when they get sold off for a proper reason. A semi cryptic profit warning announcement is a proper reason for a sell off. 

Many of these IT firms tend to trade around PE 15 with 10-15% growth. If DWS will flatline for 2 years then current PE ~10 doesn't suggest immediate bargain to me.


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## robusta (8 December 2010)

*Re: DWS - DWS Advanced Business Solutions*



skc said:


> Profit warnings usually come in sets of 2 or 3. So often you see management predicts a return to higher profits in the second half, but without providing any valid points on how that would happen. That always suggests to me there is more pain before any turnaround. Take someone like PRG or NOD for an example...
> 
> I like buying good companies when they get sold off for no reason. I don't like buying when they get sold off for a proper reason. A semi cryptic profit warning announcement is a proper reason for a sell off.
> 
> Many of these IT firms tend to trade around PE 15 with 10-15% growth. If DWS will flatline for 2 years then current PE ~10 doesn't suggest immediate bargain to me.




DWS is an IT services company, providing services to ASX 50 companies and government agencies. (ATO Etax...)

When business conditions are tough the easiest thing for business to cut is the IT company. DWS has grown revenue for nineteen years. This includes the GFC. DWS had revenue in 2010 of ~ $95 million, 2009 ~ $88 million.



robusta said:


> "Based on the information available at this point DWS anticipates H1 EBITDA will be between $12.0M-$12.5M (PCP $13.4M) and expects the H2 EBITDA results will be impacted by not more than $1.0m."
> 
> Is this a profit warning or not? Notice they are talking about EBITDA not NPAT. If you take a look at DWS annual report you will see they are talking about increasing consultants from ~500 to ~ 1000 by 2014 also the new Business Analytics practice with IBM / Cognos delivering higher margins.




So back to the original question, Is this a profit warning or just one telecommunication company needing less service over christmas?

This from the annual report

"One of the major successes for DWS NSW during the year was the engagement for a prominent telecommunications organisation to deliver content via the internet directly to the home through set-top devices, PCs and internet enabled televisions. The solution developed and implemented by DWS provides services for users to register fot the service, stream available content, allow trailer viewing, and purchase and securely view the selected content... This is simply one example of numerous successfully completed projects we have delivered during the preceding 12 months"

Hmmm Sounds a bit like Telstra's THub to me. Not sure if anyone has noticed but there has not been a massive uptake of THub. You used to have to buy it but now it is been given away with Foxtel deals. Telstra is also desperately cutting costs. 

So the questions I am asking are:

Is this loss of revenue from one customer to be followed by more?

I know how DWS performs in tough economic conditions, how do they perform in good conditions?

Is the company worth 20% less than two weeks ago because one customer has reduced demand?

Can the consultants employed by the Telecommunication company be able to be employed elsewhere?

Will DWS be able to meet the goal of doubleing consultants (~500 - ~1000) by 2014 ?

Will DWS be able to maintain historically high ROE?


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## skc (8 December 2010)

*Re: DWS - DWS Advanced Business Solutions*

The EBITDA based on management estimate is impacted by ~$2m.

Their EBITDA margin was 28% ($26.85 EBITDA / $95.7 Revenue), which means that they lost $7m due to this client on face value. Of course, if they don't fire anybody then any revenue loss may simply drop into the EBITDA line... so that single client may only account for ~$2m in revenue, which probably isn't that bad.

On the other hand, on business-as-usual basis, market was probably expect 8-10% increase in revenue. Assume linear relation to EBITDA, the business-as-usual EBITDA should also be 10% higher at ~$29m. 

So did the loss of a client killed all that growth? Or did they fail to win new businesses (which nulls the business-as-usual case) on top of the loss of a client? 

Somewhat unanswerable unless someone in the industry knows something.


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## robusta (9 December 2010)

*Re: DWS - DWS Advanced Business Solutions*



skc said:


> The EBITDA based on management estimate is impacted by ~$2m.
> 
> Their EBITDA margin was 28% ($26.85 EBITDA / $95.7 Revenue), which means that they lost $7m due to this client on face value. Of course, if they don't fire anybody then any revenue loss may simply drop into the EBITDA line... so that single client may only account for ~$2m in revenue, which probably isn't that bad.




Good point



skc said:


> On the other hand, on business-as-usual basis, market was probably expect 8-10% increase in revenue. Assume linear relation to EBITDA, the business-as-usual EBITDA should also be 10% higher at ~$29m.
> 
> So did the loss of a client killed all that growth? Or did they fail to win new businesses (which nulls the business-as-usual case) on top of the loss of a client?




Well I guess I have put my money where my mouth is. (normally I have my foot there)

DWS have a solid history of growth. Only time will tell if this will continue.


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## robusta (14 December 2010)

*Re: DWS - DWS Advanced Business Solutions*

Interesting week so far for DWS, up a bit over 11% in two days!!

I wonder if brokers have changed their view or is it a dead cat bounce?

In the absence on any news from DWS it does not bother me, in the share price rises I will sit back and collect dividends, if tha sp falls significantly I will buy some more.


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## frankbaozhu (6 January 2011)

*Re: DWS - DWS Advanced Business Solutions*



robusta said:


> Interesting week so far for DWS, up a bit over 11% in two days!!
> 
> I wonder if brokers have changed their view or is it a dead cat bounce?
> 
> In the absence on any news from DWS it does not bother me, in the share price rises I will sit back and collect dividends, if tha sp falls significantly I will buy some more.




I was wondering why I see you Robusta everywhere on this board... Are we looking at the companies with same characteristics?


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## robusta (6 January 2011)

*Re: DWS - DWS Advanced Business Solutions*



frankbaozhu said:


> I was wondering why I see you Robusta everywhere on this board... Are we looking at the companies with same characteristics?




We must be because I have absolutely 0% interest in about 90% of companies on the ASX but concentrate me efforts on the few that interest me.


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## McCoy Pauley (14 February 2011)

*Re: DWS - DWS Advanced Business Solutions*

First half results announced this morning.  It looks to me that the management has done a good job of mitigating the extent of the damage to the bottom line wrought by Telstra's decision to pull a "go-slow" on DWS' services over the Christmas-new year's period.

DWS managed to grow first half revenue by 0.7% on the prior corresponding period to $48.45 million.  First half EBITDA was down 4.7% to $12.77 million and first half NPAT was down 3% to $8.97 million.  Therefore, it looks like they slightly exceeded their revised guidance for EBITDA announced in December when they informed the market that there had been a go-slow on one of their projects.

An interim and a special dividend payable on the same day totalling $0.06/share announced.  The special dividend relates to an increase in cash balance upon receipt of completion payments for a major project.

DWS managed to re-deploy its Melbourne-based consultants who would have provided services to Telstra to new clients and new projects with existing clients.  The Canberra and Brisbane offices expanded.

No guidance on the second half provided in the report by the directors, so it's difficult (at least for me) to extrapolate out into the second half of FY11.

To my eyes, I think those that took the chance of diving in when DWS' share price nosedived after the December announcement should be rewarded as I think their result is a very good result in the circumstances.


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## robusta (14 February 2011)

*Re: DWS - DWS Advanced Business Solutions*



McCoy Pauley said:


> First half results announced this morning.  It looks to me that the management has done a good job of mitigating the extent of the damage to the bottom line wrought by Telstra's decision to pull a "go-slow" on DWS' services over the Christmas-new year's period.
> 
> DWS managed to grow first half revenue by 0.7% on the prior corresponding period to $48.45 million.  First half EBITDA was down 4.7% to $12.77 million and first half NPAT was down 3% to $8.97 million.  Therefore, it looks like they slightly exceeded their revised guidance for EBITDA announced in December when they informed the market that there had been a go-slow on one of their projects.
> 
> ...




Sp up 11.68 % today, dividend $0.05 + special dividend os $0.01. Very happy today. Dived in and averaged price paid $1.294 I intend DWS to be a long term hold.


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## fanger (14 February 2011)

*Re: DWS - DWS Advanced Business Solutions*



robusta said:


> Sp up 11.68 % today, dividend $0.05 + special dividend os $0.01. Very happy today. Dived in and averaged price paid $1.294 I intend DWS to be a long term hold.




You've got to be happy with that


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## skc (15 February 2011)

*Re: DWS - DWS Advanced Business Solutions*



robusta said:


> Sp up 11.68 % today, dividend $0.05 + special dividend os $0.01. Very happy today. Dived in and averaged price paid $1.294 I intend DWS to be a long term hold.




Nice trade robusta.

I had my doubts but the report was above their guidance.


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## robusta (17 February 2011)

*Re: DWS - DWS Advanced Business Solutions*



skc said:


> Nice trade robusta.
> 
> I had my doubts but the report was above their guidance.




Thankyou for that skc. I would like to see some nice growth now.

http://www.smh.com.au/business/thre...-is-now-working-on-growth-20110215-1av94.html

But in the meantime will be happy with the ~10% dividend yield plus franking credits straight off the bat on my buy in price.


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## fanger (10 March 2011)

*Re: DWS - DWS Advanced Business Solutions*

I got out on DWS today so I can get on some of the beat up stocks. Its held up well with the market heading south over the last 2 weeks. I've made a nice profit off it but I think there is more money to be made else where.


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## KateB (10 March 2011)

*Re: DWS - DWS Advanced Business Solutions*



robusta said:


> Sp up 11.68 % today, dividend $0.05 + special dividend os $0.01. Very happy today. Dived in and averaged price paid $1.294 I intend DWS to be a long term hold.



 This indeed seems to be a great deal...congrats...


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## robusta (10 March 2011)

*Re: DWS - DWS Advanced Business Solutions*



fanger said:


> I got out on DWS today so I can get on some of the beat up stocks. Its held up well with the market heading south over the last 2 weeks. I've made a nice profit off it but I think there is more money to be made else where.




Good luck fanger I hope you find some good value out there.

For me I am holding for that decent dividend yield and hopefully more capital growth.


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## fanger (10 March 2011)

*Re: DWS - DWS Advanced Business Solutions*



robusta said:


> Good luck fanger I hope you find some good value out there.
> 
> For me I am holding for that decent dividend yield and hopefully more capital growth.




Thanks mate!

Althou the dividend is excellent I don't see much more capital growth at the moment. I'm looking at MIN or putting some more on AGO maybe. Might even sell my dog stocks (KCN,TRS and JBH) and take some losses.


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## robusta (10 March 2011)

*Re: DWS - DWS Advanced Business Solutions*



fanger said:


> Thanks mate!
> 
> Althou the dividend is excellent I don't see much more capital growth at the moment. I'm looking at MIN or putting some more on AGO maybe. Might even sell my dog stocks (KCN,TRS and JBH) and take some losses.




MIN is a excelent compant IMO, I would love to own a piece of it one day.


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## fanger (11 March 2011)

*Re: DWS - DWS Advanced Business Solutions*



robusta said:


> MIN is a excelent compant IMO, I would love to own a piece of it one day.




Looks like I got out of DWS just in time, abit of a fluke on my part. Ended up topping up on some more FGE and picked up MIN. Still have some cash and might get back into DWS if it goes alot lower in the next couple of weeks altho I'm also looking at DTL and FWD if they get lower enough aswell.


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## McCoy Pauley (12 March 2011)

*Re: DWS - DWS Advanced Business Solutions*



fanger said:


> Looks like I got out of DWS just in time, abit of a fluke on my part. Ended up topping up on some more FGE and picked up MIN. Still have some cash and might get back into DWS if it goes alot lower in the next couple of weeks altho I'm also looking at DTL and FWD if they get lower enough aswell.




DWS went ex-dividend yesterday, I believe.


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## fanger (12 March 2011)

*Re: DWS - DWS Advanced Business Solutions*



McCoy Pauley said:


> DWS went ex-dividend yesterday, I believe.




I've got 18/3 for ex-div and payment date of 4/4 for DWS.


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## McCoy Pauley (13 March 2011)

*Re: DWS - DWS Advanced Business Solutions*



fanger said:


> I've got 18/3 for ex-div and payment date of 4/4 for DWS.




I think 18 March is the record date (probably the date they check the records for payment of the dividends), but 11 March was definitely the ex-dividend date.


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## robusta (11 December 2011)

Just got back from a week away to find my SMSF buy order for DWS @ $1.20 was filled on 8/12, should be happy with the ~ 10% dividend yield.

I have held this stock before, bought in December last year for $1.215 and sold in March for $1.44 , picked up a nice dividend along the way


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## fanger (18 January 2012)

robusta said:


> Just got back from a week away to find my SMSF buy order for DWS @ $1.20 was filled on 8/12, should be happy with the ~ 10% dividend yield.
> 
> I have held this stock before, bought in December last year for $1.215 and sold in March for $1.44 , picked up a nice dividend along the way




I picked some up myself, looks like its bouncing down at the bottom of it's range


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## clinta44 (6 February 2012)

Anyone know when the half year results are going to be announced? I don't think it will be to far away.


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## robusta (13 February 2012)

robusta said:


> Just got back from a week away to find my SMSF buy order for DWS @ $1.20 was filled on 8/12, should be happy with the ~ 10% dividend yield.
> 
> I have held this stock before, bought in December last year for $1.215 and sold in March for $1.44 , picked up a nice dividend along the way




Only short term so far but happy with the capital gain and dividend yield, 1/2 year results out today - may stick around on the register for a bit longer this time.


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## fanger (13 February 2012)

robusta said:


> Only short term so far but happy with the capital gain and dividend yield, 1/2 year results out today - may stick around on the register for a bit longer this time.




Results were out this morning and were pretty good.


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## Klogg (13 February 2012)

fanger said:


> Results were out this morning and were pretty good.




Bought this @ 1.27 a few months ago and am already way ahead on it! 

Given the dividend this is paying and the low debt level, I'd be keen just to rack these up over time...

Working in the IT projects space, I hear of a LOT of work coming up, so for players like SMS, DWS or UXC, they shouldn't have any issues in making more $$$ (just my opinion, DYOR)

And yes, awesome report IMO.


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## Muschu (9 March 2012)

I've been very fortunate with this stock and am well in front.
Hower yesterday's 7% fall puzzles me on no announcements.
Any thoughts?
Regards
Rick


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## fanger (9 March 2012)

Muschu said:


> I've been very fortunate with this stock and am well in front.
> Hower yesterday's 7% fall puzzles me on no announcements.
> Any thoughts?
> Regards
> Rick




People are getting out before it goes ex-div seeing it will likely fall by the dividend amount once.


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## Muschu (9 March 2012)

fanger said:


> People are getting out before it goes ex-div seeing it will likely fall by the dividend amount once.




SP dropped by 11c y'day and divie 6.25c


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## fanger (9 March 2012)

Muschu said:


> SP dropped by 11c y'day and divie 6.25c




Don't forget franking


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## Muschu (10 March 2012)

I didn't. Bought more and price went up.


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## Muschu (14 March 2012)

Dropping again today on an up day...


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## fanger (14 March 2012)

Muschu said:


> Dropping again today on an up day...




Its gone ex div there is no reason the buy it now. The people who bought it cum div are selling out and going else where.


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## clinta44 (2 July 2012)

Any thoughts on the preformance of the CEO and Managin director of DWS? 

Personally, Im just happy he was wearing an energy watch T-shirt and not a DWS t-shirt! 

http://www.yourtv.com.au/blog.aspx?blogentryid=1022926&showcomments=true


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## robusta (2 July 2012)

Good on ya Danny, these "reality" shows take themselves way to seriously. I thought it was hilarious he probably paid over the odds for the asset but the publicity should generate a nice return for him. Is Energy watch listed?


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## clinta44 (2 July 2012)

I don't believe Energy watch is listed! but he is certainly getting good mileage out of the stunt! 

I found this article with a classic title! 

http://www.ozbizdirect.com.au/blog/...lock-is-there-no-such-thing-as-bad-publicity/


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## robusta (13 August 2012)

Results out today, a very challenging year as expected for this sector....

But Revenue up 11%, EPS up 5% and the cash flow even better up big time. All this with no debt and a little over $15 mil in cash on the balance sheet. Not bad for a bit player in this sector. Just to put a extra smile on my face yield on my buy price is a little north of 10% plus franking credits. I think I may hold onto this one to see what they can do when times are not so challenging.


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## Muschu (19 August 2012)

SP doing OK still.  No debt.  Good dividend.  Liquidity may not suit some.


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## robusta (10 September 2012)

Imagine those looking to strip the dividend on DWS would not be too happy today, I am happy to hold and see if the margins can hold up for the next reporting period meanwhile the dividend yield is ok.


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## robusta (13 November 2012)

Profit downgrade at the AGM today, it seems things were hunky dory until October when business activity fell off a cliff. The full year forecast is down a bit as a result. The inability to raise prices and the margin pressure are starting to make me think the fantastic dividend yield may not grow much in the future. It will be interesting to see how OKN performs in this environment.


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## Klogg (13 November 2012)

robusta said:


> Profit downgrade at the AGM today, it seems things were hunky dory until October when business activity fell off a cliff. The full year forecast is down a bit as a result. The inability to raise prices and the margin pressure are starting to make me think the fantastic dividend yield may not grow much in the future. It will be interesting to see how OKN performs in this environment.




SMX has a similar issue, except their profit hit was slightly larger from memory.

To be honest, I'm not too worried about DWS profits. This might carry on for a year or two, but there is plenty of work to be done. Just a matter of banks and governments actually funding the work (IMO anyway...)


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## tinhat (11 February 2013)

DWS half year results just out. Market seems disappointed. Revenue holding up but earnings and profits down. Last trade was at 1.53. Looks tempting around here with a dividend yield of 7% net of franking credits. I do not hold.


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## tinhat (16 February 2013)

I took a small position in DWS on 13/2/13 @ $1.59

The outlook for IT still seems soft and a little uncertain, but I think there is a good chance they will maintain their 12c per annum dividend which is a payout of 87% earnings.

They have reduced their headcount to adjust to softer demand but utilization rates of IT consultants was down, especially in 13 Q2. 

First Half 13 is the softest first half in four years (in terms of EPS) and the dividend yield is the lowest its been in that time to, but at 7.3% I think it might be a good small holding in the SMSF.

PS: If you read their half year report and the "revenue by sector analysis" pie charts and, like me, you are wondering what 'FMCG' is; 'FMCG' stands for fast moving consumer goods.


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## fanger (23 August 2013)

When does dws report?


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## McCoy Pauley (27 August 2013)

DWS reported yesterday.  EPS was down ~7.5% on the previous financial year (12.74c/share compared to 13.77c/share in FY2012).


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## fanger (27 August 2013)

McCoy Pauley said:


> DWS reported yesterday.  EPS was down ~7.5% on the previous financial year (12.74c/share compared to 13.77c/share in FY2012).




Not a huge miss but slightly disappointing, still a great yield play though at the current share price.


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## robusta (17 February 2014)

Six months on and things are still tough in this sector and for DWS. Revenue down 14% and EPS down 19%


http://www.asx.com.au/asxpdf/20140217/pdf/42mrkyxv496wmb.pdf

I wonder when things will bottom for this sector?


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## VSntchr (17 February 2014)

Interesting to see they have cut enough staff that they are now back to 2008 numbers!
Bit of a different approach to DTL...


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## robusta (17 February 2014)

Yes you would think it would be more difficult to grow revenue and profits when / if the market improves with a lower head count. The other side of the coin is it must be difficult to pay staff when you have no work for them.


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## clinta44 (14 April 2014)

Starting to look like a compelling buy again.


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## fanger (14 April 2014)

clinta44 said:


> Starting to look like a compelling buy again.




The whole it services sector is getting smashed. They all look cheap but are they going to get cheaper.


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## piggybank (14 April 2014)

clinta44 said:


> Starting to look like a compelling buy again.




Hi Clinta,

So at what level are you thinking at buying into the stock, or maybe you already have Personally I think it has every chance of dropping another 50% yet, so I'll be interested to hear your reasoning.

Don't take this as advice, please do your own research.

Cheers
PB


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## clinta44 (15 April 2014)

piggybank said:


> Hi Clinta,
> 
> So at what level are you thinking at buying into the stock, or maybe you already have Personally I think it has every chance of dropping another 50% yet, so I'll be interested to hear your reasoning.
> 
> ...




The reality is I don't know what the SP will do. As far as the company goes, I'm expecting a Net profit of about 15 -15.5 mil this year, or about 11.5 cents per share. with a dividend for the second half probably 4.5 cents. 

what I like about the company its pretty consistent with its results. 
Average ROE over the last 6 years is just over 30%, Consistently pay out 80-90% of there earnings in dividends (paid out .715 cents in dividends over the last 6 and a bit years. other metrics I measure are pretty good over the six years as well. Return on NTA about 60%. They have only added 1% more shares to there registry in the last six years. I also like there disciplined approach to acquisitions. 

As far as the industry goes, I think there is push towards outsourced managed service type agreements (particularly in the government sectors). that push is in its foundation stage at the moment but over the next 2-3 years I believe there will a couple of big managed services contracts announced. (whether or not DWS will be involved will be another story). 

Anyway... that's just my thought process at the moment.


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## McCoy Pauley (19 May 2014)

DWS appointed a new CEO, Lachlan Armstrong, in March 2014.  DWS released a market briefing this morning which consists of an interview undertaken by a mob called "Market Eye" with Mr Armstrong.  I'm not sure whether the interview conducted really illuminates anything strategy or market outlook of DWS - it just reads as a lot of fluffy stuff without much actual substance.

I don't hold.


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## tinhat (19 May 2014)

This stock still keeps coming up on my radar as an income stock. Very high dividend payout ratio - around 90% of earnings. Very high ROA and ROE though so it seems they don't need to retain much earnings but then this is a business that has shrinking earnings not growth. The balance sheet seems fundamentally strong and it appears to be a well run company. I guess its a question of when the business investment cycle is going to turn for the it services sector.

I currently do not hold.


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## fanger (20 November 2014)

I thought with the announcement of the share buy back at reporting time would have supported the share price but this stock has become much unloved.


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## clinta44 (20 November 2014)

fanger said:


> I thought with the announcement of the share buy back at reporting time would have supported the share price but this stock has become much unloved.




The good thing about them not purchasing any shares back yet is that they are being disciplined with the buy back. They obviously have a set price range for the buy back and the price hasn't dropped to that level yet, my initial fear when they announced the buy back is that they would just indiscriminately buy back shares at any price. I'm thinking that if the share price drops below $1 they will start the buy back. but that's just a hunch, I really have no idea when it will kick in.


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## fanger (18 January 2015)

clinta44 said:


> The good thing about them not purchasing any shares back yet is that they are being disciplined with the buy back. They obviously have a set price range for the buy back and the price hasn't dropped to that level yet, my initial fear when they announced the buy back is that they would just indiscriminately buy back shares at any price. I'm thinking that if the share price drops below $1 they will start the buy back. but that's just a hunch, I really have no idea when it will kick in.




Looks like they have started the buy back after that last announcement.


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## fanger (23 February 2015)

Half years results were very poor


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## fanger (29 August 2015)

Can anyone give me a technical on this stock please?


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## fanger (15 August 2016)

Does anyone know when they report? My broker has it down for the 8/8/16 but we are well past that now.


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## clinta44 (15 August 2016)

fanger said:


> Does anyone know when they report? My broker has it down for the 8/8/16 but we are well past that now.




I don't have anything official, but historically its always been the second or third week of august, I am hoping it will be in the next couple of days.


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## fanger (15 August 2016)

clinta44 said:


> I don't have anything official, but historically its always been the second or third week of august, I am hoping it will be in the next couple of days.




I've checked there website but nothing since their last report in feb.


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## galumay (15 August 2016)

Last 2 years its been 2 or 3rd week of August, so I would expect it soon. Hopefully we will see some good numbers!


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## leyy (15 August 2016)

I am holding a small parcel of DWS.

It really is struggling to overcome resistance at circa $1.35, if it can crack then they reach their long term resistance of circa $1.75 and from there on it is blue skies 

There has been no news or announcements since FEB this year so let's hope for some good results/report.

Hopefully both acquisitions of Simplicity and Phoenix IT have integrated well with some synergies.

Only time will tell!


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## fanger (23 August 2016)

leyy said:


> I am holding a small parcel of DWS.
> 
> It really is struggling to overcome resistance at circa $1.35, if it can crack then they reach their long term resistance of circa $1.75 and from there on it is blue skies
> 
> ...




I thought they reported well still only on a P/E of 10


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## fanger (1 March 2017)

What peoples thoughts on them buying SMX?


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## VSntchr (2 March 2017)

SMX in the doldrums, DWS throwing SMS shareholders a lifeline. They can clearly take quite a few costs out to make the numbers look good, but this is quite a big bite for DWS and will leave the balance sheet pretty stretched.


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## galumay (2 March 2017)

Yep, I am out today. Too much debt and too much risk in this acquisition for my liking. I made nearly 40% capital gain on DWS as well as the dividends so its been good to me but the business metrics wouldnt pass my analysis if I were looking to buy now so its time to find a better home for the capital.


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## skc (2 March 2017)

VSntchr said:


> SMX in the doldrums, DWS throwing SMS shareholders a lifeline. They can clearly take quite a few costs out to make the numbers look good, but this is quite a big bite for DWS and will leave the balance sheet pretty stretched.




I haven't looked at it in great detail but I am not a huge fan of mergers between IT consultants. You are not buying much other than intangibles and existing client relationships. If you wanted the talent it'd probably be cheaper just to poach them. What conviction can the market have that DWS can right the ship? Then there are other softer stuff like cultural fit, potential onerous contracts etc, and there are not much immediate synergy aside from corporate overheads.

It's be a huge win for DWS if they can turn things around - but I certainly can't say it is a certainty.


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## fanger (23 February 2018)

DWS disappoints again. They pay a great dividend but I wish they would use that cash to get some more growth.


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## galumay (23 February 2018)

Yep, its one of the occasions where my decision to sell was correct.


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## System (5 February 2021)

On February 4th, 2021, DWS Limited (DWS) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between DWS and its shareholders in connection with the acquisition of all the issued capital in DWS by HCL Australia Services Pty Limited.


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## fanger (5 February 2021)

Bye Bye DWS you made me a lot of money.


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