Digimatic Group

[CY09]

It is interesting to learn that a Singapore based company has done an IPO on the ASX recently.

Known as Digimaticgroup. The company provides mobile advertising and marketing solutions for companies and is based at Ubi Boustead Centre. Listed at 20 Aussie Cents this month, the company raised A$16 Mil. At current price, it has increased by 80% to 37 cents as of now. A rather small cap of $34.4 Mil.

Below is the prospectus and ASX news. I wonder will this company soar or be a "S-chip" plague to ASX. Balance sheet post ipo seems fine. 

Using this as a bookmark

http://www.digimaticgroup.com/

[jovialger]

The company reported net profit of S$1.1m for year ended Mar 2015, and this included a one-off waiver of shareholder loan of $520k (reported under "other income")

Current market cap is A$171m.

Hence, is the company trading at 155x price to earnings on a trailing basis?

Total number of shares is 683,664,000. Total equity as at Mar 2015 is $16,740,000. Essentially, 90% of assets is in the form of A$16m just raised in cash.

So book value is $0.024.

At A$0.25, it is trading at 10x price to book ratio.

Any listed comparable to compare the valuation?

[CY09]

Closest comparable is Focus Media of Hong Kong who is trading at much lower valuation.

I am interested to see how Digimatic is gong to perform on the ASX. For reader's info, it is interesting to learn on the ASX, there is a group of iffy small cap Singapore companies related to each other like a particular group of co we know on the SGX So yea we too give our "love" to the Aussies, like how we allowed the listing of Linc Energy which turned out to be a flop. The love is mutual.

[heisenberg]

The business nature is a risk, internet marketing is a norm. Paradigm shift faster than we can thought of. Just coding and marketing. I personally not interesting with this business as no MOAT at all. If you can list down the MOATs by yourself, you will know what to do next.