“DG FastChannel, Inc. (DGIT) reported terrific 4Q revenues of $76.1 million, up 32%, and earnings of $14.6 million, or $0.76 per share, up 55%. The company is streamlining its name to ‘DG.’ Commenting on the results, Scott Ginsburg, CEO and Chairman said, ‘Today the company reported record results for the fourth quarter and the full year. DG’s big idea some seven years ago—to install an edge server into every North American broadcast location connected to a centralized data center—has paid off nicely for our customers, the Company and its shareholders.’ ...
“DG helps TV broadcasters maximize ad revenue and producers distribute their shows. They link 5,000 advertisers with ~30,000 media outlets and have virtually no competition. Sales and profits have been growing 40%+ over the past three years. Ad revenues are increasing and there’s more distribution deals ahead. I also expect the company to grow by making more acquisitions. I’m raising my earnings estimates based on the recent results. I now expect $2.00 in 2011 and $2.50 in 2012. Applying a 20x P/E ratio makes my target price $50.00 a share. BUY DGIT!”
Eric Dany, Stock Prospector, 2/11/11