Correct me if I’m wrong, in one of your points are you alluding key clients are major shareholders and are turning the screws on management thus in turn lower margins on projects?
Also, never give the market credit to think it’s rationale.
IMO I consider the following: 1) Ultimately DDB is a service based business - you’ll never get great multiples 2) For the MC to increase we are going to need to see proven track record for sustain/ and growth whilst being listed from both a revenue and GP $ perspective 3) Many other sexier companies over past 18 month to invest/trade 4) Is there enough liquidity for someone to come along and take a sizeable position considering the register is locked up 5) To my second point, once management demonstrates some consistent half yearly results and market confidence is high they can grow and keep margins in facts that when you’ll see some SP growth 6) Who knows when we will see the SP turn, could be next quarterly, could be in 6,12 or 24 months however when it comes it will could relatively quickly due to liquidity.
GLTAH
DDB Price at posting:
44.0¢ Sentiment: Buy Disclosure: Not Held
