In terms a 5th grader could understand it ?
I went long hoping that $6 would hold but it didnt. Kind of flying blind here based on the insider buying & the book value.
I have orders in at lower prices because if $6 didnt hold, maybe $5 wont either.
One can get bloody fingers from catching falling knives.
Why I'm replying I don't know because I'm pretty sure you don't care. They deliver ad's to TV stations and more recently on the internet. At one point they controlled a huge portion of commercial delivery because they had servers in the actual TV stations across the country, a decent barrier to entry and they made gobs of money (i believe a fortune article in 11 indicated they delivered like 70 or 80% of the commercials that year and that they would make a bundle in 12 due to the elections, God I wish they would not have run that article). Then there model was disrupted by the digital revolution and I think they saw the TV market competition was going to heat up significantly so they paid a bundle to buy Mediamind and they went from the dominant player in low competition industry to competing with guys like Google. This was an unmitigated disaster and to prove that they wrote off $219 million in goodwill and busted their bank covenants this year. founder drifted into the backround until he thought the stock price needed a little juice so he put out there that he may take the company private (which was funny but not as funny as the rumors that GS was going to sell them for $1B in 2011). Anyway they were cash flow positive in Q4 but I wouldn't put a lot of stock in that book value #$%$ you were looking at cause $369 million of it is goodwill (but looky that number was $580 million last year, see how fast your BV thesis can fall apart)
sounds like you are up .10, you have faired better than about 90% of DGIT's investors. I would head for zee hills
Good synopsis of what the company does. Like to just make everyone aware about the big loss in the earnings. This was an impairment loss which basically readjusted the overvalued assets. Thats why the book value dropped from $19 down to $11. Along with that there had to be a renegotiating of the loans outstanding. Okay, so that's done. Now for 2013 we are looking at a profit of $0.56. I'll give them the benefit of doubt and lets see what the first quarter looks like. I will continue to hold and wait for the shorts to unwind their position. Again today, I knew that the shorts would use a stock market drop to try and force the longs to sell. As you can see, there is no volume and a big drop. I expect a rebound this afternoon as the realization that no longs are selling and we still have 9.3 million shares that must be bought. Keep your shares and each bit of good news will make the shorts know that the price of the stock has bottomed. The only way the stock can drop is for the longs to sell. If there are no shares available for the short sellers to buy, they will have to pay higher prices. Be patient and wait for earnings.
Sentiment: Strong Buy
Why would you buy stock in a company when you don't know what you're buying? That aside, DGIT's business involves preparing executive compensation agreements and restricted stock awards. Time in BOD meetings is spent telling jokes about shareholders not employed by the company.
I'd be happy to explain this in terms a 5th grader could understand...
If you are losing money ($8.73 per share) Why would ANYONE buy this? I first heard about it when Karen Findermann mentioned it as a take-over target so I started watching, but never bought (thank God). Still watching it to see if anything happens. All that has happened so far is it is LESS than half of what it was when she mentioned it. Now a takeover is even less likely.
You didnt say what the company does.
Never heard of Findermann. Bought because it was about half of book value and there had been some insider buying and the board was at least looking at selling at one point.
Doesnt mean it wont go to $4 first but I think its got a reasonable chance of going to $8-10 in the next year or two anyway.