DWS - DWS Limited

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.

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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?

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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.

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frankbaozhu said:

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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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.

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 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.

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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.

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skc said:

Nice trade robusta.

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

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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.

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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.

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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.

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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.

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robusta said:

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

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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.

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McCoy Pauley said:

DWS went ex-dividend yesterday, I believe.

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fanger said:

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

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