I did do some playing around with figures and will post them when I find my other thumb drive :-) Have a dig through my old posts I might have mentioned figures a few times, however my accuracy and methods might be dubious, I like to think I am getting better. I keep going over my notes to justify in my head why my holding makes up the percentage of my portfolio that it does, and instead of saying yep that’s why I'm holding, I buy more. I try to keep my posts contained as I don’t want to sound like a spruiker, but it’s the best way of having my research questioned.
Anyway, to your question.
From the last half, they missed a month of revenue from Magna (400Kish). Only 3 months worth from Oyster and 3D, (900k) and none from The Square Group. They also had a non recurring payment of 500K for restructuring. As all previous growth on the Entertainment arm was primarily by acquisition so I think it’s really too hard know. I've been conservative here. The Media side’s growth was mainly organic and should continue to go gangbusters. From the financials I understood it that, The Square Group should net about 375k for the second half of 07 (so I'll call that EBITA). Consolidation may include payout packages and termination payments, relocation costs etc and they did flag some revenue degradation as they pursue higher margins. So I'd be happy with 7.5m but I can see the potential for considerably more.I think consolidation will begin to manifest itself in the 08 FY, which with 35 to 40 million less debt should vindicate my faith in the company and bring a big green smile to my portfolios red face.
As for turning heads, I think a lot of people will be watching. We will get a glimpse of what DES's make up really looks like and a clearer picture of where we are headed. If it’s good, it could be really good for the SP.
Cheers
Oscar
DYOR
DES Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
