RE:Anyone listen to conference call?I did listen to the conference call. Basically they noted that the results were weak and pointed to the postal strike and general western Canadian economic weakness as the culprits. They also discussed the fact that the third quarter last year had some one time non-recurring projects/revenues from clients. They discussed some one time expenses like costs related to the name change, share split and such. These of course won't be recurring. They also noted that the Edm office restructuring costs were going to be closer to $3.5m than the $5m previously guided... mostly due to lower severance commitments. Lastly, they discussed the splitting of the President/Ceo roles. Michael will act as CEO and focus on financial/acquisition related endeavours while the President (who was on the board) will focus on increasing sales. I had a look at his past roles and he appears to be quite successful. They also did hint at acquisitions.
That's about all... my next BNN appearance will be interesting to say the least. I haven't had to deal with a stock down in my 'past picks' yet... let alone down as much as DCM is. This really does feel like a massive overreaction to me. I get the market is very focused on short term results and has concerns that their traditional business is going down the toilet but let's keep in mind they have the relationships with the clients. As long as these clients don't stop marketing or communicating with clients/prospects you have to think they will capture some of the 'new school' (digital) activities. As Michael Sifton mentioned on the call this restrucure is not linear... and after putting up a nice string of quarters this one was certainly a wart. I'd be silly to not at least concede this could be the start of a new trend but I believe this isn't the case.