Top Bulls Reasons To Buy — Vote below!

Add a New Bulls Reason

Company: DG FastChannel (DGIT)
Current price:
Headline: (100 character max)
Analysis:
Cancel
100%
agree
3 votes

  STRONG BUY & HOLD / ACCUMULATE

The disaster of the month of August 2010 was DG FastChannel (DGIT), now down over 60%. The firm said it sees Q3 revenue of $51-53 million versus consensus of $61.49 million, which was a disappointment, and if shares were near their 52-week high, then the sell off might be justified from 08-30-2010, perhaps. However, the shares are at their 52-week low as of 08-30-2010. DGIT sees 2010 revenue of $230-243 million versus consensus of $246.23 million, so also a shift down in guidance there, but that shortfall is basically the Q3 shortfall which may be skewed as electoral spending will be up for the election. After today, the company is going to be trading at a forward P/E of around 8x, if we lower 2011 EPS expectations to $2 from the current $2.13-2.18.

Along with the low P/E, the company's current cash position is equal to about 25.5% of the current share price, all with no debt on the books. Growth still looks to be in the 20%-plus range and the company is buying back around $30 million in stock. The August highs in the mid $40s to the current price around $15.90, this one is clearly overdone and should reward patient investors. The biggest mpmentum here will be short covering from institutions buying and the $41 target update by Oppenheimer .... Technicals are completely displacing fundamentals currently. This company is in a good solid position to move forward and no way they are going bankrupt

(100 character max) Cancel
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki