DWS - DWS Limited

[skc]

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.

 

[robusta]

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.

Good point

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.

 

[robusta]

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.

 

[frankbaozhu]

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.

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

 

[robusta]

Re: DWS - DWS Advanced Business Solutions

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.

 

[McCoy Pauley]

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.

 

[robusta]

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.

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.

 

[fanger]

Re: DWS - DWS Advanced Business Solutions

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

 

[skc]

Re: DWS - DWS Advanced Business Solutions

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.

 

[robusta]

Re: DWS - DWS Advanced Business Solutions

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.

 

[fanger]

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.

 

[KateB]

Re: DWS - DWS Advanced Business Solutions

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...

 

[robusta]

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.

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.

 

[fanger]

Re: DWS - DWS Advanced Business Solutions

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.

 

[robusta]

Re: DWS - DWS Advanced Business Solutions

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.

 

[fanger]

Re: DWS - DWS Advanced Business Solutions

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.

 

[McCoy Pauley]

Re: DWS - DWS Advanced Business Solutions

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.

 

[fanger]

Re: DWS - DWS Advanced Business Solutions

DWS went ex-dividend yesterday, I believe.

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

 

[McCoy Pauley]

Re: DWS - DWS Advanced Business Solutions

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.

 

[robusta]

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