DGL.ASX

[arekaywhy]

Certainly looks like a good buying opportunity.

Given their place servicing multiple areas of the economy now, and the likelihood that the regulatory environment around chemicals and chemical waste will always ratchet higher, they are placed well to make some coin.

[Shareguy]

Certainly looks like a good buying opportunity.

Given their place servicing multiple areas of the economy now, and the likelihood that the regulatory environment around chemicals and chemical waste will always ratchet higher, they are placed well to make some coin.

I agree and have added more today.

[winner (n)]

Jeez....BP target of $2.16 if reached is 85% gain from current price ...wow

I note one broker has a $2.85 target .....that's two wows

[Shareguy]

Chemicals business Redox has ruled off its institutional priority bookbuild at 13.75-times earnings for the 2024 financial year, which would give it a $1.3 billion market capitalisation.

Based on 13.75. X DGL earnings FY23F $30m NPAT =$412m

Current DGL market cap 284.9m shares x $1.15=$327m

[winner (n)]

Chemicals business Redox has ruled off its institutional priority bookbuild at 13.75-times earnings for the 2024 financial year, which would give it a $1.3 billion market capitalisation.

Based on 13.75. X DGL earnings FY23F $30m NPAT =$412m

Current DGL market cap 284.9m shares x $1.15=$327m

Always interesting exercise in comparing multiples. ...pity the world is unfair and all things aren't equal eh

What multiple was DGL trading at once?

But in saying that DGL seems to be getting cheaper by the day ...bargain basement price yet?

[KW]

Chemicals business Redox has ruled off its institutional priority bookbuild at 13.75-times earnings for the 2024 financial year, which would give it a $1.3 billion market capitalisation.

Based on 13.75. X DGL earnings FY23F $30m NPAT =$412m

Current DGL market cap 284.9m shares x $1.15=$327m

Need to deduct off DGL "earnings" from property revaluations to see what the underlying operational business is worth.  

[KW]

Profit downgrade today.  Looks like property revals won't save them this time.

DGL Group Limited (DGL Group or The Company) (ASX: DGL) provides the following trading update and guidance for FY23. The Company previously reported forecast underlying EBITDA for FY23 to be in the range of $71.5 – $73.5million and now revises this estimate to $64 - $66million. 

DGL Group has met its revenue forecast to date, with FY23 revenue expected to exceed $450million. However, cost increases inside our operations have eroded margins, particularly within the Environmental division and is the main driver of the revised guidance. 

[winner (n)]

Quite a big downgrade as well

Share price down 18% in early trading to under a buck.

[winner (n)]

Taken them long enough to come out with the bad news .....end of year weeks away. Damage to margins just didn't happen overnight

First half sales and ebitda up on pcp ..second half sales up but ebitda down heaps on

Full year sales up about $100m on pcp but ebitda about the same.

From all the positive rhetoric from the company over the last year or so you'd think they would doing much better than this ...could say full year a bit of a disaster.

They have a credibility problem now.

[Stoploss]

Taken them long enough to come out with the bad news .....end of year weeks away. Damage to margins just didn't happen overnight

First half sales and ebitda up on pcp ..second half sales up but ebitda down heaps on

Full year sales up about $100m on pcp but ebitda about the same.

From all the positive rhetoric from the company over the last year or so you'd think they would doing much better than this ...could say full year a bit of a disaster.

They have a credibility problem now.

I think he has had that "credibility problem" for quite some time now .....

[winner (n)]

When F22 result was announced last August they came out and said "......, the Group anticipates its earnings growth to flatten in FY23"

Share price collapsed from $2.80 to about $1.40 on that news but they then came out and said the market misunderstood them and came out with some guidances showing growth

F23 is going to be flat ....maybe even declining profits .....so he was right back last August.

[KW]

Taken them long enough to come out with the bad news .....end of year weeks away. Damage to margins just didn't happen overnight

First half sales and ebitda up on pcp ..second half sales up but ebitda down heaps on

Full year sales up about $100m on pcp but ebitda about the same.

From all the positive rhetoric from the company over the last year or so you'd think they would doing much better than this ...could say full year a bit of a disaster.

They have a credibility problem now.

I'm wondering if their auditors are pushing back on those property revaluations.  Either forcing them to revalue downwards, or denying them the ability to revalue them up like previous years to meet targets.  Operational costs dont suddenly appear overnight.

[Basil]

Maybe he could invite Nadia Lim onto the board 

[Sideshow Bob]

Maybe he could invite Nadia Lim onto the board 

Probably still rather own DGL than MFB.

But own neither....

[arekaywhy]

temptation is rising