Digital Marketing Group Plc (LON:DIGI) Group (DIGI, 28p, £20.89m)  Interims to September 2010 saw revenues decline to £22.49m (£24.70m) with gross profits up to £17.90m (£17.44m), a increase in gross margins to 79.6% (70.6%) and an underlying operating profit of £1.82m (£2.02m) before amortisation, and an underlying PBT of £1.56m (£1.64m) with 0.42p (0.2p) EPS.   The group ended the period with a net debt of £6.07m (£7.26m at the yearend). The group has yet to see an increase in the financial services sector which would help the digital services operations, but growth is being seen in its ecommerce division. The group hopes to improve on its operating profit performance in the second half. Forecasts of £3.5m with 3p+ of EPS looks achievable, putting the group on a modest PER of 9.3x for the current year. We still see upside to around 12x – giving a target price of 36p. BUY  

Medicsight Plc (LON:MDST) (MDST, 4.5p, £7.0m) has announced its major shareholder, MGT Capital Investments, which holds 55% will distribute the shares to its individual shareholders. As a result we see significant liquidity driving an already depressed share-price lower. SELL ahead of the distribution expected in H1 2011.  

Oxford Advanced Surfaces (LON:OXA) (OXA, 15.5p, £30.34m)has announced a solution to the delamination problems facing device manufacturers in plastic electronics – in effect enabling flexible displays. Back on the 25th September 2010 we felt the stock was over-valued and recommended selling down to the a6p from the 24.5p level. Given the share is modestly below our target price we move the shares to a HOLD.  

SocialGO (LON:SGO) (SGO, 1.125p, £4.26m) Back in September we wrote the stock was a Hold (at 1.5p) and that may even be optimistic. Final results and the replacement of the broker and nomad tends to suggest the group will  seek further capital.  Results for the six months to September 2010 saw revenues of £0.42m (£0.09m) with gross profits of £0.18m (loss £0.07m), a gross margin of 43.8%. R&D costs fell to £0.09m (£0.13m) and admin costs increased to £0.84m (£0.65m) leaving overall the loss from operations at £0.66m (£0.72m). The group ended the period with £0.03m of…

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