DGL Group provides chemical manufacturing, transportation, storage and recycling across Australia. The stock looks cheap – it’s down about 80% from its record high of $4.09 in April last year and is trading at a 33% discount to their Net Tangib of $1.17. Pretty rare to be able to buy a strong ongoing concern significantly below replace cost.
DGL has over 4000 clients spread across just about every major industry you can think of:
DGL have been consolidating a very fragmented industry. They don’t use slippery investment bankers either to complete deals – big tick for that!!
Growing regulation of chemical usage will make it harder for new entrants to come along and compete with DGL’s vertically integrated model.
Founder and CEO Simon Henry owns over 50% of the company. He didn’t sell any when the company floated on the market and actually bought more above $2 – the dude has plenty of skin in game.
DGL Group has also been buying back some of it’s shares on issue whilst the company is trading significantly below NTA – something you like to see! BUY last sale $0.77