Design Studio - exploded!

PKC
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13 years 9 months ago #4141 by PKC

Replied by PKC on topic Re:Design Studio - exploded!

Depa may hope that the mysterious litigation case reappears again and scares the market into selling them at 55c. However, I believe the market is wiser know and simply ignores this. After all, Depa should have better info than others, as both Depa and the litigator are based in Dubai. If this litigation case is a big issue, Depa wouldn\'t have offered to buy over DS in the first place.

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mokooi
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13 years 9 months ago #4146 by mokooi

Replied by mokooi on topic Re:Design Studio - exploded!

Don\'t ASS.U.ME to much.. market is crashing... Europe austerity happy.. FED fund rate already 0%,.. economy heading for double dip,.. sovereign state on the brink of default,.. in times like this, if you are Depa, would you be anxious to up your offer? :laugh:

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PKC
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13 years 9 months ago #4148 by PKC

Replied by PKC on topic Re:Design Studio - exploded!

If you are so pessimistic then go ahead and sell all your stocks. There is always something to worry. A few months ago, people were worried about economy overheating and central banks might start increasing interest rates soon. Now, the same people are worrying about economic slowdown. Do you think there is nothing to worry next week, month, year? By the time, everything is perfect, perfection has also been priced in the market. Very often, that\'s also the market peak! Nobody knows where the market will move next week, month, or even year. However, if you buy a good company with good margin of safety (low PER, good balance sheet, etc.). If the company keeps on performing well, eventually its price will follow.

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neontet
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13 years 9 months ago #4150 by neontet

Replied by neontet on topic Re:Design Studio - exploded!

Who dares to buy 10% first will be rich! PE of 1X for a profitable business! :cheer:

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Dongdaemun
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13 years 9 months ago #4174 by Dongdaemun

Replied by Dongdaemun on topic Re:Design Studio - exploded!

Married deal this morning of 500,000 shares at 56.5 cents - this is another strong indication of a buyer or buyers who believe that Depa will have to fork out a higher offer price than 55 cents. As has been noted in this forum earlier, Depa cannot buy above 55 cts currently as it has an offer on the table. And ever since the offer was made, the stock has mostly traded higher than 55 cents. So Depa\'s offer is effectively dead - and the market awaits its revised higher offer...... Will it come? :laugh:

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PKC
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13 years 9 months ago #4197 by PKC

Replied by PKC on topic Re:Design Studio - exploded!

Having read through the offer document, one of the reasons Depa gave that the offer is 88.03% above net book of value of $0.2925 is not quite material. DS is a design company and therefore is asset light. You only use book value to value such as banks or property firms. DS has to be valued based on PER which is absent in the document, because it is damn cheap! at 4.6x FY10F or 3.6x FY10F ex-cash. Star Publications offered Cityneon, a similarly illiguid and had slower growth, at 12.2x PER. At this PER, DS is valued at $1.46! Even if you use current industry average of 7x. It is worth 84c. Another reason gave was the economic uncertainty. When there is such thing as economic certainty? If there is, then it\'s also very likely that is the market peak. Last year, DDS Asia (Depa\'s VC with DS) was Depa\'s best subsidiary performer (out of 25). If Depa manages to own 50% of DS, then it\'s considered as a subsidiary and hence the financial results will be relected in Depa\'s. Considering this strategic benefit to Depa, at 55c is not reasonable!

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