Australia's largest stock trading and investment forum Australia's #1 stock forum

DWS

Click for more information

0.00%

$1.20 dws limited

Ann: Client Update, page-15

First 15 Last

Share
Profile

Follow
simondj

4,044 Posts.

201

06/08/15

07:44

Post #: 15758830
Share

Originally posted by Transversal ↑

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.

Expand

Looking at this post, the stock is mimicking your user ID!

DWS Price at posting: 91.5¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

KOB

Koba, formerly a cobalt player, gears up to become newest explorer in the uranium state: South Australia

Trimmed CPI figure provokes market jump of 1%, but inflation pressures remain a reality

MRC

Mineral Commodities to shut down Tormin mineral sands project as oil spill contaminates beach

1CG

One Click Group jumps 4% after ending quarter with $2.4M in cash; $1M in revenue and 150K+ users on board

MGU

New results confirm Buena Vista's iron grades potential

First 15 Last

Add DWS (ASX) to my watchlist