Ann: Client Update, page-11

Looking at their half-year report, and adjusting for their latest dividend payment, cash on hand should be 11.05m$, or 8c per share. Adding other current assets and subtracting total liabilities, you get a net liquid asset value of 12.5c per share. Still, I see very little chance of the SP getting anywhere near 20c in the short term, the main reason being that virtually all the company's expenses are employee benefit costs, which are manageable; by just using cost cutting, DWS can manage to stay cashflow positive even at meaningfully lower levels of revenue. The challenge for them in the medium/long term is how to reverse the current negative revenue growth trend, which is achievable but will certainly require some investment in new technology; in the mean time, it is logical to expect DWS's PE to keep trading at a discount to the broader IT services sector. Because that discount is already pretty steep, I do not see much downside in holding at today's levels. IMO+DYOR+GLTAH.