Post by
C3POConsulting on Jun 16, 2022 3:22pm
Annual General Meeting June 16, 2022
I listened to the call today and listened to their outlook relative to 5-10% CAGR Sales Growth and Operating Gross Margin in the 35-40% range. In all honesty, I would have expected greater than 10 percent in Revenue Growth in Q1 as a 10% Revenue Growth can be attrributed just to increases in supply chain management including both raw materials and transportation costs as most of their raw material comes from the US and then shipping finished goods to their Clients. Manufacturing Gross Margin in 35- 40% is expected as the Marketplace is just readily accepting price increases and what DCM does have going for them is size and the ability to secure raw materials where smaller players simply can't.
Here is the number one thing to consider for the future of DCM and its ability to increase shareholder value. DCM is in the business of providing complex products and services to the marketplace including overall management, production, warehousing, digital asset management, and managing complex biling and reporting to Clients. Those companies requiring this complex management are either provided by DCM or RRD. So I ask these two basic questions, Can DCM significantly grow its wallet share within its existing large client base and can they steal contracts away from RRD from having a better widget and value propositon. Those are the unknowns. I believe that Richard did a great job on the call today, their business basics are sound and are investing in their people and repostioning their brand in the marketplace. I don't believe however it is going to translate into signficant increases in the value of their stock price but time will tell. As stated this is a climb to get DCM back up to where it was at 300 million in revenue but it should not be forgotton that this was once a 400 million dollar company after the acquistion of Relizon.
Comment by
Ethanbrodie on Jun 16, 2022 5:43pm
does anyone know of a recorded replay? thanks
Comment by
WanTBe1 on Jun 17, 2022 10:28am
Glad that's over .Nothing was said that we didn't already know. I like this statement. As stated this is a climb to get DCM back up to where it was at 300 million in revenue but it should not be forgotton that this was once a 400 million dollar company after the acquistion of Relizon. How many Million is DCM at now.?