Well my research tells me there are potential issues for revenue from existing clients.
The issues relate to the law surrounding email marketing coming in to force in the coming weeks.
Many companies send and keep sending emails, in the hope one gets opened, but they are either not be opened or people ignore them. With the new sign up regs on emailing potential customers, it would be suggested that companies will be sending many less emails than they currently do so. and that will/could effect DOTD over the next two years.
I wonder if that's why the sales team at DOTD are chasing existing clients and trying to tie them in to minimum email package deals now for the forth coming year!!
Some suckers will be taken in and buy what they have used in the last 12 months or even buy more than they use, (Based on last 12 months usage) others will spot it and we will see a potential fall back in revenue from the company. So we might see flat lining over the next two years from existing customers, and they will need substantial New business to keep the sp going forward.
This is currently a gamble in my eyes over the next two years, maybe they company would like to come out and confirm that they don't envisage any issues on revenue from existing clients.
Matters not, if some have been sucked in, they might smell the coffee next year, when they have thousands of unused email sends they haven't used.
I suspect a fall back on share price, but certainly on to keep on the watch list.
Seem to have got rid of the overhang of shares on the market and DOTD now moving back up. My recent punt at 88p now showing blue after the unexpected 2M sale at around 78p and ignoring the 10% stop loss flag as AIM volatility .Hopefully we can hit the ton again and move on upwards. In theory advertising woes at FB and WPP could mean more business for DOTD but WTFDIK ?
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"Born in the dotcom boom 15 years ago, LSE:DOTD:dotDigital has made good, steady progress since moving from the PLUS market to AIM four years ago. Then, its shares changed hands for about 7p. Now, it's almost five times that, and earnings growth ..."
Positive 1 Year Relative Strength - Yes
Positive 1 Month Relative Strength - No
ROCE of 20% - Yes 34%
Profit Margin of over 7.5% - Yes 22%
Cashflow Per Share greater than EPS around - Yes 1.57
Low Gearing Yes -65%
Director Share holding >10% - Yes 28%
Some recent large sells but only a small % of their holding
Quick ratio of > 1.0 but preferably >1.5 Yes 4
Dividend Yield (a nice to have) forecast Yes
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