DWCH - Sector: Technology---Industry: Software & Programming

[voipssimo]

Analysts expect DWCH to post 6c per share on Nov. 17 on record revenues. Last year it reported 5c/share.DWCH is a profitable low-float (2.4M float), 4.5M cash, no debt, software company that provides Sarbanes Oxley and other hot software solutions.

DWCH has a history of running big into earnings and has gapped a buck or more in the past after earnings.  Last quarter Datawatch reached $5.48 up from $3.88 after 3Q 2005 earnings were announced on July 25.


Datawatch develops a full suite of software products widely used in the Accounting, Compliance (Sarbanes_Oxley), Goverment, and Healthcare industries.

http://stockcharts.com/gallery/?dwch

[voipssimo]

DWCH is up again in pre-market today.

[timewarner]

Hey voip, I've been watching you DWCH for an entry point. Hard stock to figure out. There was a poster at the DWCH that posted something  that makes alot of sense. I Have an order to buy big at $4. Even if it dips a little under $4, DWCH is a real bargain at $4 IMO. Hre is what that guy/gal wrote.

DWCH posted 11c/share on record revenues. Beat analysts by 80% margin.....2.4M float..$1/share  cash cash.....ZERO debt.....will fly to $6+

Also, insiders paid $4.5/sh on Friday..link below....


11/17/05 EARNINGS SUMMARY:


- 4Q 2005 Revenues: $5.7M vs. $5M in 4Q 2004

- 4Q 2005 Net Income: $617K or 11c/share vs. $266K or 5c/share

- Analysts expected revenues of $5.6M and net income of 6c/share

- Cash position: Increased to $4.9M in 4Q 2005 or $1/share from $4.3M in 4Q 2004, a 20% increase.

- Long Term Debt....ZERO

- Float......2.4M shares

- Market cap of $22.5M...

- Undervalued P/S ratio of 1.0. Industry average is over 3.

- Steady revenue growth year after year...quarter after quarter.

- Projected revenue for 2006 of $24M

- Projected net income for 2006 40c - 50c/share

- Undervalued forward P/E of about 10 for a growth company entering new markets

The CC was very upbet. The bottom line: DWCH growth in revenues and profitability will continue into 2006 and beyond at an accelerated pace.

Fair valuation of DWCH is at least $8/share based on conservative ratios of 20 P/E and 2.0 P/S.

The street will realize this soon, and with a float of only 2.4M, DWCH might just be the best buy in the market under $5.

Insiders obviously know that. They made a strong statement in that regard buy converting 27,000 shares at $4.5 on November 19.......or bout 5% premium over the closing price on November 18.

http://www.pinksheets.com/quote/filings.jsp?symbol=DWCH

The change in business model that the company decided to implement in 2004 to grow revenues and eventually the bottom line is finally paying off.

You can easily see below the sequentially stronger results in every quarter of 2005:

4Q 2005: Rev. $5.7M, net income of 11c/share
3Q 2005: Rev. $5.6M, net income of 6c/share
2Q 2005: Rev. $5.1M, net income of 0c/share
1Q 2005: Rev. $5.0M, net LOSS of 3c/share

Revenues for 2005 were $21.5M vs. $19.3M in 2004 and $17.7M in 2003. DWCH is on a path to increase revenues to about $24m in 2006.

DWCH announced late last year that it would implement a new business plan and increase sales and marketing expenses. This resulted in a temporary drop in net income from 19c/share in 2004 to 14c/share in 2005. However, 2006 net income is going to grow exponentially based on what was demonstraded in the last 2 quarters.

DWCH CEO had this to say earlier this year about the growth-oriented business plan:

...."The upfront cost of selling and implementing these projects is absorbed currently, but the recurring revenue stream will be recognized over the period that the service is provided. We believe this model will provide a more predictable stream of future revenue as the customer base expands...."

It is obvious that the company is executing its business plan eaxactly as planned in a focused, and efficient fashion.

Don't forget that 1Q 2006 earnings results will be announced in less than 2 months from now. With the current momentum, the Q/Q revenue and net income comparables will be staggering. Remember that DWCH posted a loss in 1Q 2005 and is expected to post double-digit net income in 1Q 2006.

Notice that DWCH traded a lot higher in the past even though the fundamentals today are stronger than ever. In fact, 4Q 2005 was the strongest quarter since 2000.

http://stockcharts.com/gallery/?DWCH

I believe that with continued successful excecution of its business plan and based on new products in growing markets, DWCH will be trading in the $15 -$20 range within a year.

Here is the 4Q earnings release:

http://biz.yahoo.com/prnews/051117/neth013.html?.v=33

DWCH might very well turn into the CKCM of 2006
 
 
Datawatch develops a full suite of software products widely used in the Accounting, Compliance (Sarbanes_Oxley), Goverment, and Healthcare industries. For instance Datawatch Monark software helps automate financial reporting by combining and mining totally separate databases to produce seamless reports. This software is widely used in Sarbanes-Oxley compliance reporting and is one of the fatest growing revenue streams for datawatch. 

[timewarner]

Hey Voip, your DWCH is starting to move up. I am in at $4.05.

Good luck

[timewarner]

Hey Voip, I couln't resist the temptation and I bought at $4.21 before the closing. The filing last week that 3 insiders paid $4.5 per share for 27,000 share made my decision easy. I figured that if insiders are willing to pay more than the market rate, they should know better. Besides, I've bever seen insiders pay more than the market rate. It this uncommon?

Hey, are still in DWCH?

[havesomebucks]

Great DD on two  prior posts  on this thread. This one sounds like a real winner. Thank you

[Ramsburg]

Triple clone user:
voipssimo = timewarner = havesomebucks

users banned, topic locked.

best regards,

ps: thanks for reporting

[newnewbie]

DWCH is starting to move up ahead of its 1Q 2006 earnings release:

http://stockcharts.com/gallery/?dwch

DWCH will release its 1Q 2006 earnings in January (per 4Q CC) about 3 weeks AHEAD of last year. When DWCH announces a release date in a few days, the stock will fly just like it did when 4Q earnings date was announced. This time however the expectations are a lot higher because of the blowout 4Q earnings.

Highlights:

- Record earnings expected (rev & net income)in 1Q 2006 based on recent trends.

- 11c/share net income on record revs in 4Q. 4th consecutive quarter of revenue and income growth

- Tiny 2.4M share float. 5M total outstanding shares

- $1/share cash

- Zero debt

- Currently trading at P/S of 0.8. Peers trade at 3++

- January effect......


BOTTOM LINE......MANY...MANY CATALYSTS FOR A EXPLOSION TO $6+ IN JANUARY IMO

Take a look at the exponential growth during 2004 capped with a 11c/share net income on record revenues. Analysts estimated 5c/share net income:


http://finance.yahoo.com/q/is?s=DWCH

DWCH has a sterling balance sheet featuring $1/share cash and ZERO debt:

http://finance.yahoo.com/q/bs?s=DWCH

The yearly revenue growth is impressive as well with $17M in 2003, $19M in 2004, and $21M in 2005.

I estimate revenue for 2006 to increase 20 to 30% compared to 2005.....net income of over 40c/share.

I expect DWCH to surpass $10/share after the 2nd quarter of 2006 because that would be 3 quarters in a row with double-digit net income.

FOR MORE DETAILS GO TO:

http://dwchtoten.blogspot.com/

ALSO CHECK OUT WSCI $3.7....STRONG EARNINGS TO BE NEXT WEEK:

http://wscitofive.blogspot.com/


Another low-float gem likely to be a huge gainer after 1Q 2006 earnings in January is RMI:

http://rmishines.blogspot.com/



ALWAYS DO YOUR DD

[bjc]

The good old wiseman pump n dump?

I'd tend to avoid this pick..

[newnewbie]

No one is telling you to buy. Do your own unbiased and objective  DD and you'll at least eliminate it as an investment opportunity based on your personal investment criteria and not on innuendo or other emotional reason.

Wiseman or no wiseman this one is a screaming buy at these prices.

good luck

[newnewbie]

OK.

This is my last post on this thread until DWCH reaches $5. It is about to breakout now. That's all I'll say.

This link gives you a starting point for your own DD.

http://dwchtoten.blogspot.com/

[vivdcosta]

"This is my last post on this thread until DWCH reaches $5".

Why make a statement when you are not going to honour it ? Keep pumping.

[snowcat]

maybe if the chart had more structure and it traded more than 12k shs a day it would get more attention

[bulllissimo]

Thank you for the tips on DWCH and WSCI. I am already ahead on both of them. Excellent info on those blogs. Thank you again.

[bulllissimo]

Hey New,

It looks like DWCH will breakout today.