Mar 01 2006
Affiliate Shares - DGM
I’ve been watching a few shares in affiliate related companies but haven’t yet got out there and bought anything.
DGM
On this six month chart the DGM shares were priced above 20p but have suffered a serious fall due to dgmpro not being implemented correctly, changing client terms and a profit warning. The CTO has now resigned and there have been various movements on the board.
On one hand I feel that the share price is bound to bounce back again but this could be nothing more than emotion. I’ve dealt with the company for a number of years and think that a company on this scale should soon be showing signs of growth again. The profile that DGM have means they are still capable of attracting big brand names however they will have to work hard to win back affiliates.
There seems to be a high turnover of staff and everyone I knew has now moved on so it remains to be seen how the existing staff will get on. Hopefully there will now be a period of stability where affiliates can get to know and again trust their network account managers.
DGM also lost a number of bigger brands including Dialaphone, Screwfix and B&Q although there has obviously been some dispute over whether they lost them or have asked them to leave. No matter the circumstances I would be surprised if this isn’t affecting revenue.
There was recent talk of a take over bid but there has been no new news on this and it was never made public who was interested although I think it was stated that there is more than one party interested.
DGM announce results on the 13th March and until then I don’t think much will happen.
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[...] I’ve been chatting to another affiliate and we were discussing how strange it is that the big “traditional” affiliate networks in the UK are just not moving forward. DGM who have been around for a long time really messed up with their new interface which was already long overdue and in my opinion are still standing still. Today it was announced they are still in talks about a take over and it might need something like that to freshen up the company and get them moving forward again. [...]
Pingback by Fraser’s Affiliate Blog » State of the Industry — July 12, 2006 @ 4:13 pm
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Mar 8th, 2006 at 10:09 am | #
intresting facts you have gathered thanks a lot.
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