This stock will be back in the $40s this fall if the market calms down. I just ran the numbers and it currently trades at 6.5x and 5x this and next year's EBITDA multiples. It is completely feasible for DGIT to trade at 10x 2011 EBITDA in 6 months... do the math yourself. Regarding competition, this is a tiny little company the VP joined - no ad executive will risk his job by giving them a substantial amount of their account business. Do your diligence - maybe in 3-5 years this could be a threat to DGIT, maybe not... but DGIT would have generated more than $500mm in cash flow in that period :)
Do your grandiose earnings ratios include the $100 million of debt coming for the content storage business acquisitions that are coming shortly?
Yahoo, Google, AOL & MSFT aren't interested in buying a vehicle to just transfer ads & content to radio & TV stations, they're interested in controlling(Archiving) and distributing THE DIGITAL CONTENT WORLDWIDE and the investment bankers have told the DG/Fastchannel management this and so that's the direction were going.......PERIOD!
VIDEO CONTENT, VIDEO CONTENT, VIDEO CONTENT AND THE CONTROL OF IT IS THE NAME OF THE GAME!