DG FASTCHANNEL INC COM USD0.001 (NASDAQ:DGIT)

CAPS Rating: 4 out of 5

The Company is a provider of digital technology services that enable the electronic delivery of advertisements from advertising agencies to traditional broadcasters and other media outlets.

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Player Avatar TMFUltraLong (99.98) Submitted: 8/31/2010 4:06:45 AM : Outperform Start Price: $14.03 DGIT Score: -45.17

DG FastChannel...oh how the mighty have risen and fallen all within the last two years. DGIT would not have been one of my first choices for a long about two weeks ago - in fact it was a possible short trading at some very lofty levels. Now, trading at about 9 times 2011's profit projections, about 0.9 times book value and with $2.80 in net cash per share I think you're getting yourself a nice value. DGIT is going to grow at 18% per year for the next five years and although pricing pressures will always beat down the advertising sector, I just don't see how you can't be expecting a quick bounce here over the next few days/weeks. Make no mistake this is a shorter-term pick and although the fundamentals back up the rebound, I'm not convinced they won't deserve this valuation in say a year or two. My 2 week to 2 month target is in the $17-18 range and I'll be looking to nab DGIT at $14.72 as a limit buy.

UltraLong

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Member Avatar ValentinoAmoro (< 20) Submitted: 11/17/2011 6:56:52 PM
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Ultra, heads up, looks like this is an old 'short term' pick made in 2010 that fulfiled now. Not sure whether you still feel the same way about the firm.

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