DGL.ASX

[KW]

Probably still rather own DGL than MFB.

But own neither....

If its a choice between two flea bitten dogs, I'll take the cat 

[Shareguy]

After a nice couple of days in the gulf disappointed to come back to this announcement. So close to year end. Still a lot to like with this company. Growth in top end, cash flow good with reduced inventory.

A small holding at this stage.  Don't see this as major and  Will look to add once I have seen how property revaluations and acquisitions have gone. At least Simon has said no more script to be used in future acquisitions.

[Basil]

If its a choice between two flea bitten dogs, I'll take the cat 

Saw this in the other place "So since Simon Whimp made his Nadia Lim comment on 3 May 2022, DGL's sp is down 71%." 
I'll take the goat thanks, definitely no cleavage shown in this image lol https://thespinoff.co.nz/pop-culture/17-10-2022/nadias-farm-is-nadia-lim-like-youve-never-seen-her-before   

[Teitei]

So here's why the sp is getting slammed and finding little support :

EBITDA

H2 2022 $32.7m
H2 2023 $25.3m (based on trading update of $65m for full year)

Definitely no longer a growth stock and only the second earnings downgrade.

The smart ones got out when Simon Whimp waved the BIG RED FLAG with his uncouth and unhinged Nadia Lim comments.

[winner (n)]

[/quote]

So here's why the sp is getting slammed and finding little support :

EBITDA

H2 2022 $32.7m
H2 2023 $25.3m (based on trading update of $65m for full year)

Definitely no longer a growth stock and only the second earnings downgrade.

The smart ones got out when Simon Whimp waved the BIG RED FLAG with his uncouth and unhinged Nadia Lim comments.

Pretty bad 2nd half eh teitei ...ebitda down about 25%

Full year picture pretty telling ........sales up about $100m on prior year but ebitda about the same .......that's not good eh. (Prob means NPAT down on last year)

More acquisitions to help F24 year ......hope it's not going to be a year with sales upnheaps and less profit

Irrespective of person Henry does seem to piss the market off quite regularly

[winner (n)]

EBITDA margin f22 was ~18% ......F23 its going to be ~14%

Big drop .....sometimes seen as a sign of bad management not being on top of things

[Shareguy]

Have been adding and now at top end of what I am comfortable at for a punt.

[Shareguy]

What a difference a month makes. Back over a dollar.

Canaccord Genuity rates ((DGL)) as Downgrade to Speculative Buy from Buy (1) -

Canaccord Genuity was disappointed with the update from DGL Group as it pointed to materially lower EBITDA guidance, stemming from higher costs across the business. Still, on the positive side, strong demand continues for services and there is robust cash conversion.

FY23 EBITDA guidance was revised down -10% which implies broadly flat earnings year-on-year. The broker turns its attention to FY24 with a number of influences on its modelling, including the impact of the higher costs in the second half and the incremental contribution from FY23 acquisitions.

While investors may prefer to wait for a more detailed outlook at the August results Canaccord Genuity believes the shares offer value at the current rating, which is downgraded to Speculative Buy from Buy. Target is reduced to $1.55 from $2.85.

This report was published on June 16, 2023.

Target price is $1.55 Current Price is $0.81 Difference: $0.74
If DGL meets the Canaccord Genuity target it will return approximately 91% (excluding dividends, fees and charges).
Current consensus price target is $1.13, suggesting upside of 39.9%(ex-dividends)
The company's fiscal year ends in June.

[CalBe55]

What a difference a month makes. Back over a dollar.

Canaccord Genuity rates ((DGL)) as Downgrade to Speculative Buy from Buy (1) -

Canaccord Genuity was disappointed with the update from DGL Group as it pointed to materially lower EBITDA guidance, stemming from higher costs across the business. Still, on the positive side, strong demand continues for services and there is robust cash conversion.

FY23 EBITDA guidance was revised down -10% which implies broadly flat earnings year-on-year. The broker turns its attention to FY24 with a number of influences on its modelling, including the impact of the higher costs in the second half and the incremental contribution from FY23 acquisitions.

While investors may prefer to wait for a more detailed outlook at the August results Canaccord Genuity believes the shares offer value at the current rating, which is downgraded to Speculative Buy from Buy. Target is reduced to $1.55 from $2.85.

This report was published on June 16, 2023.

Target price is $1.55 Current Price is $0.81 Difference: $0.74
If DGL meets the Canaccord Genuity target it will return approximately 91% (excluding dividends, fees and charges).
Current consensus price target is $1.13, suggesting upside of 39.9%(ex-dividends)
The company's fiscal year ends in June.

Let me ask you, why did the price fall so much? Is there something wrong with the company? Is there a risk that the fall will continue and the price will not rise in the near future?
Hi all.

[Shareguy]

Welcome to stock talk.

My understanding is the price fell due to not meeting market expectations with a profit downgrade. Also making inappropriate comments regarding a person involved with the disaster ipo of MY Food Bag has not helped.

I have read all that is available and think the business has a reasonable moat and is able to pass on costs. Also find the high insiders stock holding attractive.

Watch some of the interviews on the ceo. He is very passionate.

A roll up business model that has the market concerned on the multiples paid and what is the future value.

In my opinion it's a punt and investors could get very burnt with this one. Also has decent upside potential, which is what interests me.

[CalBe55]

Welcome to stock talk.

My understanding is the price fell due to not meeting market expectations with a profit downgrade. Also making inappropriate comments regarding a person involved with the disaster ipo of MY Food Bag has not helped.

I have read all that is available and think the business has a reasonable moat and is able to pass on costs. Also find the high insiders stock holding attractive.

Watch some of the interviews on the ceo. He is very passionate.

A roll up business model that has the market concerned on the multiples paid and what is the future value.

In my opinion it's a punt and investors could get very burnt with this one. Also has decent upside potential, which is what interests me.

Thank you. Do you think the price will fall further or can we expect a rise now?

[Ferg]

Share buyback announced of up to 10% of issued shares, from 30 August 2023 for 1 year.
Source

[Shareguy]

Results this coming Monday 28/8. 

Have continued to add.  Hope my hunch is correct.

[KW]

Limited property revaluations this year.  What a difference that makes.

You cannot view this attachment.

[winner (n)]

Some pretty dodgy stuff in the "Highlights" portion of the announcement .....esp ebitda growth etc