DBS - Dark Blue Sea

[damianjohn]

I am new to this, and was looking for market talk on DBS (dark Blue Sea) but none there, so why not start a new thread...

DBS stock has been very positive upwards for most of the last year, from 25 cents to 80 plus, fortunately for me, but volatility has increased along with price; I guess this is day traders coming in based on speculative market talk, none of which I seem to know about!

Official announcements are generally affirming previous diretcion or consistent with public domain info, so what is out there that is unofficial that may be boosting the price ahead of fundamentals?? Any comments?

 

[sam76]

Re: DBS: Dark Blue Sea

I haven't looked at this one for a while.

I think the fat boys or huntleys had a buy on these guys about 4 months ago

You might find out some more info from there websites

I think domain names are only going to get bigger.

 

[damianjohn]

Re: DBS: Dark Blue Sea

Sam76 thanks foryour comment! I couldnt find any research by Huntleys.

I have studied DBS as a minor shareholder for a while and I think DBS are a great little stock, although I always worry abt a stock if the price runs ahead of the actual performance. I know the domain name space has become very gold rush like in the US, and maybe is being reflected a bit in recent gains in this ASX stock, as it is 100% exposed to the US internet industry. Business 2.0 and Forbes articles in the last few weeks has brought the domain name industry more into the mainstream media.

The DBS fundamentals are interesting-- For the 6 months ended June 05 they got EBIT = EAT of about $A 2.3m, their first significant profit. which equates to annualised at around 5c eps net on 85m shares. From pretty well small numbers a couple of yrs back, they grew revenue to about $A25m in 0405, and incremental costs are low. == the next quarterly cash flow report (due jan 06) will be well worth watching. It will indicate if their recent strong sales and cash flow growth is still trending well. The current price of 80 would indicate 16x 0405 earnings, and who knows what x 0506.

Strategically DBS is probably a good component of a portfolio as it brings an exposure to internet advertising, which is growing very rapidly. They seem to be well positioned in the direct navigation market, which is all about controlling traffic flow through owning or managing a large portfolio of domain names. Some observers predict the big 2 Google and Yahoo will inevitably move in this area. Maybe there is some risks to small players there others understand better than me, but there is alot of speculation there will be some bigtime consolidation coming up, and DBS seems to have become one of the big direct nav players at the right time, with a big .com portfolio now to hand.

Interesting stock to watch, as it is in such a new business area which is roaring along.

 

[clowboy]

Re: DBS: Dark Blue Sea

The first thing I will say is who cares why...if it keeps trending like it has over the last two months I will be very happy.

Should have picked this one instead of EMi for the tipping comp, but I thought it had run to far to fast at that time.

Aside from all that the latest spike in price seems to me to be becuase they are now "listed" on the american exchange...as per anouncement about 1.5 weeks ago.

Also if they continue to grow at the rate that they have over the last fin year (profit wise) then one would have to ask is the share price still too cheap? And what of the following year?


Anyway hope it contiues it's trend up up and away.

 

[blaze87]

hey recently looked at this stock. would like any comments possible,
-so far this company looks like it's earning a excellent rate of ROE, ROA % ROIC for the past 4 years.
-shares outstanding has been pretty stagnant
-it's a cash generator
-recently announced a buyback
-accounts receivable decreasing
-0 debt

taken a beating recently... personally i might get on board after this an evidence of a uptrend. would appreciate any comments.
ps i just did a 5 mins analysis on the information given by commsec finanicals page so there might be alot of things i didn't know about the company
so i guess that what this forum is for... to share information lol
thanks

 

[mailman]

Most of their revenue comes from $U.S and Dean Shannon the founder sold at around 55cents unique business and most of their revenue comes from Yahoo and Google.

I think you will see this company get taken out buy a big adnetwork in the states also 20% owned by Photon Group.

 

[blaze87]

Most of their revenue comes from $U.S and Dean Shannon the founder sold at around 55cents unique business and most of their revenue comes from Yahoo and Google.

I think you will see this company get taken out buy a big adnetwork in the states also 20% owned by Photon Group.

hey ya, where did u get the info that the founder sold at around 55 cent.. i can't find it..
also pga has tried to acquire this company 12/2006 at 65 cent. maybe they would try it again.
i assume u meant that this company might get taken over by a big adnetwork, u had a little typo up there, just wanted to clarify