Data Communications Management Corp T.DCM

First Coverage Report

[warrenbuffetwho]

I set up google alerts for DCM a while back so I could stay on top of their news after investing. I was happy to wake up and see that e-research had iniated a report on the company this morning and had a price target of $3.60 - a similar target as many of the posters on this board. Great to get some external validation and while I am still working my way through the report it gives a lot of great insight as to the potential DCM has moving forwards. See link below: 

https://eresearch.com/2021/08/16/eresearch-reports/digital-first-strategy-and-tactical-consolidation-drives-ebitda-growth-at-dcm/

[SidelineSitter]

I found this little nugget from the eResearch paper you linked. From page 41: DATA Communications Management Corp. paid eResearch a fee to have it conduct research and publish reports on the Company for one year.

[knicksman]

It's too bad his numbers don't make sense. Adjusted EBITDA excludes restructuring for reported quarters, but it does not exclude it going forward. $30 million of Adjusted EBITDA is too low. I still think that they will generate adjusted EBITDA of $35 million this year.  His Q3 and Q4 expectation are too low.

[nozzpack]

What I do like is the fact that we now can compare DCM with many more peers in its several niches. This provides more confident outcomes using peer valuation multiples.   As mine and othe peer based valuations have shown, DCM fair value comes out rather high relative to current market cap. Howver, when more peers are added to strengthen the multiple metric , high values of Fair value

[nozzpack]

Just a few more points re the new research report. BTW, I have followed E Research for years and they, while paid a fee, have a very decent record , from which I have had multiple baggers. First, CEWS is extended to include Q3. The least that DCM have received todate is $1.6 million, so I don't foresee anything less than that. Also, Q2/ 22 did not benefit from changes in working capital

[lscfa]

Target price implies $32 mil ebitda next 12 months....     Share price 3.6 Shs o/s 46.4 Mit cap 167.0 Debt 57.8 Ent. Value 224.8 Multiple 7