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DGIT系統公司 Message Board

  • longtimefollower longtimefollower Feb 19, 2013 11:58 PM Flag

    At $6.45, company is being valued at 4.35x EV/EBITDA.

    Considering their dominant market share, the notion that this business is suddenly going to erode overnight seems like a huge overreaction. If they can actually just show a few quarters of GROWING revenues and ebitda, the stock could be "revalued" hugely higher, and we could see a buyout in the mid to upper teens.

    But I guess, for now, the Street is waiting to see that come to it fears more shrinkage in the business (which makes the financiers fearful of floating an acquisition of the company, at this time).

    I guess the timing is just not right...and the financial results, while far from awful, and suggestive of very powerful cash flows...are just not enough to justify a 6X valuation, that might have gotten this thing sold.

    In any case, it's cheap enough for me, and I bought more at $6.45 (my first purchase, since "the plunge"), just before the close. I don't think this game is over yet.....and think there's a greater certainty of making money here, buying in the low $6's...and down. (Although I suspect we may see some pretty firm support in the low $6's, for now.)

    Sentiment: Buy

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