Diligent share spike spells more good news

BY ALAN WOOD
Last updated 05:00 15/03/2010

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Diligent Board Member Services has a further upside from a recent share price rise according to one analyst's recommendation paper.

Diligent shares were untraded on Friday but have recently been at 45c, the top of a 12-month trading range of 7c to 45c.

Market watchers say the stock is still relatively illiquid but there has been some fresh investor interest following a long period in which the stock lost favour after a poor debut on the NZX where it listed at $1 a share in December 2007.

Diligent, which has a product development arm in Christchurch with 12 staff, has software-based products which include hosted online board papers for companies. Diligent is listed on the NZX but is incorporated in Delaware and answers to regulations both in the United States and here.

McDouall Stuart analyst Roger Paterson, in a recent note, gave the stock a buy recommendation and a target price of 80c.

He said Diligent's fourth quarter 2009 operating result, released in mid-January, showed an acceleration of the already strong growth the company had in the first three quarters.

At a micro level Diligent was saying it was seeing stronger brand recognition. "In our view, 2010 will be a breakthrough year for Diligent. We rate Diligent a buy with a 12-month target price of 80c a share."

Hamilton Hindin Greene director Grant Williamson said the company had a disappointing start on the NZX but had recently showed good results.

"Some investors are starting to take notice of them, although there's never a lot of volume going through. The share price is back up to the highs we saw in October last year when they had a spike," Williamson said.

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