Now is the Time to Buy DGM for 2007

Not exactly news, hamida!
And they have confirmed that the trading in 2006 is "broadly in line with forecasts", as recently as this month.


Forecasts
Year Ending Revenue Pre-tax EPS P/E
31-Dec-06 26.00 2.00 0.37p 9.1

Cap is currently just over £13m at 3.5p.
The city could well now start to believe a 2007 forecast pre-tax of £3m (up 50% in line with forecasts) x p/e of 15 = £45m cap, which means that we could be looking at a share price in the realms of 10p+!
And if you think a p/e of 15 is optimistic, then look at IBG, the nearest competitor, whose share price is currently off its best, but still trades at a p/e of over 40.
That gives you a price not far off DGM historic highs. Do the maths yourselves, guys.
Hang on tight.