Note also that the on-balance-volume (OBV) is very strong. Couple this with oversold indictions from RSI and MACD and we seem to have a good opportunity to buy into a small company with improving prospects.
The longer term graph (below) shows the price history.
The decline from 2007 to 2010 indicates a classic depressed stock. However, after a period of "bottoming out", there now seems to be some indications of a resurrection in the share price. Our interest started when Taya Communications increased their holding to 12.145 million shares (19.87%) - clearly they had spotted some value here! DCD Media has nine operating companies producing and selling television programmes and licensing various rights to third parties. The accounts for the year ended 30th June 2010 showed an improving balance sheet, with £4.9m in cash - not bad for a company with a current capitalisation of £5.9million!
With a low PSR (0.17) and improving prospects, we believe that this is well worth adding to our DIY-Investors portfolio.
What do you think?
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